For many Arizonians, the allure of seafood feasts served up at their local Red Lobster will no longer be an option as the restaurant chain grapples with its financial woes. Earlier in May, Red Lobster filed for Chapter 11 bankruptcy protection, according to Phoenix New Times. Since the filing, the company has been on a path of contraction, closing locations around the country, including three in Arizona: the Red Lobster at Desert Sky Mall in Phoenix, and others in Oro Valley and Yuma.
Following a string of closures, FOX Business reported that Red Lobster has decided to cut its losses further by shutting down 23 additional outlets nationwide. These closures span across states such as California, Colorado, Florida, and New York. In a filing, the company lamented that keeping these locations operational would "continue to drive losses," signaling the depth of financial distress Red Lobster is navigating through. Evidently, the $20 all-you-can-eat shrimp deal, which was intended to lure in customers, turned out to be a part of the trouble leading up to the chain's monetary pinch.
Peering into the history of the once thriving seafood giant, Red Lobster launched its first restaurant back in 1968 in Lakeland, Florida. During its peak, those craving seafood could find comfort in chowing down on crab legs, lobsters, and the iconic Cheddar Bay biscuits that became nearly synonymous with the brand. Despite now facing challenging times, Red Lobster is still supported by its largest shareholder, Thai Union Group — a noteworthy seafood producer based in Thailand.
Despite their struggles, Red Lobster is determined to keep its remaining 500 or so restaurants afloat nationwide. According to closures reported by both the Phoenix New Times and FOX Business, the brand has made it clear that they are not going out of business, despite the bankruptcy and downsizing. By retracting from less profitable locales and slimming down its operations, the company perhaps can navigate through the choppy waters of its current financial crisis.
