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?
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. Most Arizona locations, however, are safe.
One Southern Arizona Red Lobster, located in Oro Valley, is listed as temporarily closed on the chain's website. But the rest of the 16 locations sprinkled throughout the Valley, Flagstaff, Prescott, Yuma and the Tucson area, remain open.
So, for Arizona fans of all-you-can-eat shrimp and biscuits, don't worry, your local neighborhood Red Lobster is likely still open. But it may be wise to get your fill soon.
