Audio By Carbonatix
National chain Red Lobster filed for Chapter 11 bankruptcy protection in May. The giant seafood chain known for its crab leg and lobster deals, along with its Cheddar Bay biscuits, has closed restaurants around the country. With the most recent wave of closures, Arizona is down three locations.
The chain’s money troubles come thanks to increased labor and rent costs plus business missteps, such as the $20 all-you-can-eat shrimp deal, whose permanent addition to the menu was a financial flop, outlets including NPR and CNN reported.
Red Lobster was founded in 1968 and over the last 50 years, the initial Lakeland, Florida restaurant has grown into a household name. The restaurant chain has a number of co-owners, with the largest shareholder being Thai Union Group, a Thailand-based company and seafood producer.
Are Phoenix Red Lobster locations closing?
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Along with the bankruptcy, the chain is reducing its numbers. So far, dozens of restaurants have closed around the country, and the equipment from those locations was put up for auction.Prior to the bankruptcy, Red Lobster had 17 locations throughout the Valley, Flagstaff, Prescott, Yuma and the Tucson area. But sine May, three Arizona locations have closed:
Red Lobster at Desert Sky Mall
2810 N. 75th Ave.
Red Lobster in Oro Valley
11695 N. Oracle Road, Oro Valley
Red Lobster in Yuma
1521 S. Yuma Palms Pkwy.
