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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>UNITED
      STATES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
      AND EXCHANGE COMMISSION</strong></font></div>
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      D.C. 20549</strong></font></div>
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      8-K</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CURRENT
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PURSUANT
      TO SECTION 13 OR 15(D) OF THE</strong></font></div>
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      EXCHANGE ACT OF 1934</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
      of
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      17, 2006</u></font></div>
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      Seafood Restaurants, Inc.</u></strong></font></div>
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                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;<u><font size="2">16313
                  N. Dale Mabry Hwy, Suite 100,
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                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>33618</u></font></div>
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                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;<font size="2">(Address
                  of Principal Executive
                  Offices)</font></div>
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                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;<font size="2">(Zip
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Registrant&#8217;s
      telephone number, including area code: </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>&#160;&#160;&#160;&#160;
      (813) 961-0944</u></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Not
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Former
      Name or Former Address, if Changed Since Last Report)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
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      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (see General Instruction A.2 below): </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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      ]&#160;&#160;&#160; Written communications pursuant to Rule 425 under the
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      &#160;]&#160;&#160;&#160; Soliciting material pursuant to Rule 14a-12 under the
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      &#160;]&#160;&#160;&#160; Pre-commencement communications pursuant to Rule
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      ]&#160;&#160;&#160; Pre-commencement communications pursuant to Rule 13e-4 (c)
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
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</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Entry
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      information under Item 2.01 of this Current Report on Form 8-K is incorporated
      under this Item 1.01 as if set forth herein.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      2.01</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Completion
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
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      17, 2006, Shells Seafood Restaurants, Inc. (the &#8220;Company&#8221;) excercised its option
      to purchase the Shells Seafood Restaurant location at 3415 College Road, Ocala,
      Florida (the &#8220;Ocala Location&#8221;) for a purchase price of $1.41 million pursuant to
      the Lease, dated September 20, 1996, by and between the Company and Ocala Joint
      Venture. Immediately following such purchase, the Company completed a sale
      and
      leaseback transaction (the &#8220;Sale and Leaseback Transaction&#8221;) with FRI Fish LLC,
      pursuant to which the Company sold and simultaneously leased back the Ocala
      Location. In connection with the Sale and Leaseback Transaction, the Company
      entered into a Purchase and Sale Agreement, dated April 17, 2006, with FRI
      Fish
      LLC (the &#8220;Purchase and Sale Agreement&#8221;) pursuant to which it sold the Ocala
      Location to FRI Fish LLC for $1.65 million. In addition, the Company entered
      into a Land and Building Lease, dated April 17, 2006, with FRI Fish LLC (the
      &#8220;Lease Agreement&#8221;) pursuant to which FRI Fish LLC agreed to lease the Ocala
      Location to the Company for a period of twenty years. FRI Fish LLC</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      is
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      the Sale and Leaseback Transaction was determined based on arms&#8217; length
      negotiations between FRI Fish LLC and the Company. A copy of the Purchase and
      Sale Agreement as well as the Lease Agreement are filed herewith as Exhibits
      10.1 and 10.2, respectively.</font></div>
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      9.01</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Financial
      Statements and Exhibits.</strong></font></div>
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      <div align="center">
        <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

            <tr bgcolor="white">
              <td width="2%">
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                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt" size="2"></font>&#160;</div>
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              <td width="2%"><font size="2">(d)</font></td>
              <td colspan="2" width="35%"><font size="2">Exhibits.</font></td>
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              <td width="2%">&#160;</td>
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              <td valign="bottom" width="2%"><font size="2">10.1</font></td>
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                  </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">and
                  FRI Fish,</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">LLC.</font></div>
              </td>
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              <td width="2%">&#160;</td>
              <td width="2%">&#160;</td>
              <td width="33%">&#160;</td>
            </tr>
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              <td valign="bottom" width="2%"><font size="2">10.2 </font></td>
              <td width="33%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Land
                  and Building Lease, dated April 17, 2006, between the Company&#160;
                  </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">and
                  FRI Fish, LLC.</font></div>
              </td>
            </tr>

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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the requirements of the Securities Exchange Act of 1934, the registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="top" width="32%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
                : April 21, 2006</font></div>
            </td>
            <td align="left" valign="top" width="2%">&#160;</td>
            <td align="left" colspan="4" valign="top" width="44%">
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                SEAFOOD RESTAURANTS, INC.</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="32%">&#160;</td>
            <td align="left" valign="top" width="2%">&#160;</td>
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            <td align="left" colspan="2" valign="top" width="38%">&#160;</td>
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{"company-data": {"conformed-name": "SHELLS SEAFOOD RESTAURANTS INC", "cik": "0000935066", "assigned-sic": "5812", "irs-number": "650427966", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-28258", "film-number": "06773536"}, "business-address": {"street1": "16313 N DALE MABRY HWY", "street2": "STE 100", "city": "TAMPA", "state": "FL", "zip": "33618", "phone": "8139610944"}, "mail-address": {"street1": "16313 NORTH DALE MABRY", "street2": "SUITE 100", "city": "TAMPA", "state": "FL", "zip": "33618"}}
UNITED
      STATES
SECURITIES
      AND EXCHANGE COMMISSION
WASHINGTON,
      D.C. 20549
__________________________________________
FORM
      8-K
__________________________________________
CURRENT
      REPORT
PURSUANT
      TO SECTION 13 OR 15(D) OF THE
SECURITIES
      EXCHANGE ACT OF 1934
Date
      of
      Report (Date of earliest event reported)
April
      17, 2006
Shells
      Seafood Restaurants, Inc.
(Exact
      Name of Registrant as Specified in its Charter)
Delaware
0-28258
65-0427966
(State
                or Other Jurisdiction
of
                Incorporation)
(Commission
File
                Number)
(IRS
                Employer
Identification
                No.)
16313
                  N. Dale Mabry Hwy, Suite 100,
                  Tampa, FL
33618
(Address
                  of Principal Executive
                  Offices)
(Zip
                  Code)
Registrant's
      telephone number, including area code:
(813) 961-0944
Not
      Applicable
(Former
      Name or Former Address, if Changed Since Last Report)
Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (see General Instruction A.2 below):
[ 
      ]    Written communications pursuant to Rule 425 under the
      Securities Act (17 CFR 230.425)
[
       ]    Soliciting material pursuant to Rule 14a-12 under the
      Exchange Act (17 CFR 240.14a-12)
[
       ]    Pre-commencement communications pursuant to Rule
      14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ 
      ]    Pre-commencement communications pursuant to Rule 13e-4 (c)
      under the Exchange Act (17 CFR 240.13e-4(c))
Item
      1.01
Entry
      into a Material Definitive Agreement.
The
      information under Item 2.01 of this Current Report on Form 8-K is incorporated
      under this Item 1.01 as if set forth herein.
Item
      2.01
Completion
      of Acquisition or Disposition of Assets.
On
      April
      17, 2006, Shells Seafood Restaurants, Inc. (the "Company") excercised its option
      to purchase the Shells Seafood Restaurant location at 3415 College Road, Ocala,
      Florida (the "Ocala Location") for a purchase price of $1.41 million pursuant to
      the Lease, dated September 20, 1996, by and between the Company and Ocala Joint
      Venture. Immediately following such purchase, the Company completed a sale
      and
      leaseback transaction (the "Sale and Leaseback Transaction") with FRI Fish LLC,
      pursuant to which the Company sold and simultaneously leased back the Ocala
      Location. In connection with the Sale and Leaseback Transaction, the Company
      entered into a Purchase and Sale Agreement, dated April 17, 2006, with FRI
      Fish
      LLC (the "Purchase and Sale Agreement") pursuant to which it sold the Ocala
      Location to FRI Fish LLC for $1.65 million. In addition, the Company entered
      into a Land and Building Lease, dated April 17, 2006, with FRI Fish LLC (the
      "Lease Agreement") pursuant to which FRI Fish LLC agreed to lease the Ocala
      Location to the Company for a period of twenty years. FRI Fish LLC
is
      affiliated with Drawbridge Global Funds, a beneficial owner of greater than
      5%
      of the Company's common stock. The consideration paid upon the consummation of
      the Sale and Leaseback Transaction was determined based on arms' length
      negotiations between FRI Fish LLC and the Company. A copy of the Purchase and
      Sale Agreement as well as the Lease Agreement are filed herewith as Exhibits
      10.1 and 10.2, respectively.
Item
      9.01
Financial
      Statements and Exhibits.
(d)
Exhibits.
10.1
Purchase
                  and Sale Agreement, dated April 17, 2006, between the Company
and
                  FRI Fish,
LLC.
10.2
Land
                  and Building Lease, dated April 17, 2006, between the Company
and
                  FRI Fish, LLC.
SIGNATURES
Pursuant
      to the requirements of the Securities Exchange Act of 1934, the registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized.
Date
                : April 21, 2006
SHELLS
                SEAFOOD RESTAURANTS, INC.
By:
/s/
                Warren R. Nelson
Name:
Warren
                R. Nelson
Title:
Vice
                President and Chief Financial Officer
2