Beloved Seafood Chain To Close More Locations After Bankruptcy

For many years, Red Lobster has been a top choice among seafood lovers looking to sit down for a solid meal. It became known for offering lobster eaters the chance to pick out their dinner, as well as their warm and delicious Cheddar Bay biscuits. But despite these choices that have made the restaurant a classic, Red Lobster has made other business decisions that have been less successful. The economy has been tough ever since the COVID-19 pandemic, and many customers no longer have the disposable income to spend on seafood dinners. Despite valiant efforts, like an all-you-can-eat shrimp deal and a marketing campaign with beloved VH1 icon Flavor Flav, Red Lobster filed its petition for chapter 11 bankruptcy in 2024. Its initial plans included closing approximately 100 underperforming restaurant locations. Its goal was also to convince landlords at approximately 100 other locations to agree to rent forgiveness so the locations could stay open. However, Red Lobster’s top creditors formed together to create RL Purchaser LLC, which has proposed to buy the company for $376 million. This has put a halt to rent forgiveness negotiations, leading to the closure of another 23 restaurant locations. At least one of these locations- Yuma on 1521 S. Yuma Palms Parkway- will close as a result of this latest update.

Just like restaurants and other types of businesses, everyday people are struggling to get by. One late paycheck, or car problem, or physical injury, or any other event could cause a person to fall into debt that will expand on itself thanks to late fees and interest. There are few options on how to escape from debt once things have gotten to this point. If you find yourself in these circumstances, one of your options may be bankruptcy. Individuals can use chapter 11 bankruptcy to clear debts but it is uncommon and usually reserved for businesses, like Red Lobster. You may qualify to discharge your financial obligations using either chapter 7 or chapter 13 bankruptcy. To learn more about your options, call 480-780-2211 for your free consultation.

Red Lobster Locations In Arizona

Arizona has several Red Lobster locations, although that number is dwindling. At least one Arizona Red Lobster location, in Yuma, will be closing in the latest round of Red Lobster shutdowns. Including the Yuma location, there are currently 16 Red Lobster locations in Arizona, which are as follows:

Chandler: 7240 West Ray Rd, Chandler AZ 85226
East Mesa: 6149 E Southern Ave, Mesa AZ 85206
Flagstaff: 2500 S. Beulah Blvd., Flagstaff AZ 86001
Gilbert: 3845 S. Gilbert Road, Gilbert AZ 85297
Goodyear: 15311 W McDowell Road, Goodyear AZ 85395
Mesa: 1403 S Alma School Rd, Mesa AZ 85210
Peoria: 7921 W Bell Rd, Peoria AZ 85382
Phoenix: 2810 North 75th Ave., Phoenix AZ 85035
Phoenix: 10220 N 28th Drive, Phoenix AZ 85051
Prescott: 1821 AZ-69, Prescott AZ 86301
Scottsdale: 4802 E Cactus Road, Scottsdale AZ 85254
Surprise: 13709 W Bell Road, Surprise AZ 85374
Tucson: 5061 North Oracle Road, Tucson AZ 85704
Tucson: 5315 S Calle Santa Cruz, Tucson AZ 85706
Tucson: 5870 E. Broadway Blvd, Tucson AZ 85711
Yuma: 1521 S Yuma Palms Parkway, Yuma AZ 85365

Other Restaurant Bankruptcy Cases

Because the cost of living has gotten so high, many potential diners are sticking to home-cooked meals to save on food expenses. Restaurants- especially fast-casual restaurants- have been feeling the squeeze due to this shift in priorities. For many, the cost of eating out is only worth it if the food is especially affordable, or an expensive splurge for a special occasion. Red Lobster falls in the middle of these two price points. Because of recent struggles in the restaurant industry, Red Lobster isn’t the only chain to file for bankruptcy protection. Some other recent bankruptcy filings in the restaurant industry include:

Rubio’s Coastal Grill: This fast-casual Mexican chain filed for bankruptcy and closed several locations throughout the Southwest. It cited rising labor costs as a reason behind the filing in the wake of a major hourly wage increase in California for employees of large restaurant chains. However, the chain had already been struggling and filed for bankruptcy once before.
Roti: This Mediterranean restaurant chain filed for chapter 11 bankruptcy in August 2024. Its petition only listed $0 to $50k in assets but $1 to $10 million in liabilities. Its 19 locations are at risk as the company seeks a buyer.
Buca di Beppo: This Italian chain, which could be considered a competitor of Red Lobster, also filed for bankruptcy in August 2024. Part of its bankruptcy plan is to cancel the leases on at least 12 of its underperforming locations.

Ensuring a Seamless Bankruptcy Filing

Red Lobster has undoubtedly spent millions on specialized counsel and guidance on filing for chapter 11 bankruptcy. In addition to bankruptcy lawyers, large companies that file for chapter 11 bankruptcy usually must retain a financial advisor or firm and other professional guidance. Thankfully, this isn’t usually necessary for the most common forms of personal bankruptcy, chapter 7 and chapter 13. Most successful bankruptcy debtors can get their debts discharged with representation from only a bankruptcy law firm.

Filing chapter 13 bankruptcy without an attorney is almost a guarantee that your case will end in dismissal. When a case is dismissed, the debtor loses protections from the automatic stay and debts are not considered discharged. Essentially, this is a failure of a bankruptcy filing. The success rate for cases filed with a bankruptcy attorney at the helm fare much better than those that are filed pro se, or without an attorney. Chapter 13 cases require accurate payments rather than simply wiping debts away like in chapter 7 bankruptcy, so calculations must be correct for a case to proceed. Chapter 13 cases last either 3 or 5 years, so this requires a great deal of planning which is best left to a skilled professional.

Chapter 7 debtors who file without an attorney tend to have better odds of success than self-represented chapter 13 debtors, but the highest success rates are still those who retain bankruptcy counsel. Chapter 7 bankruptcy tends to be much simpler than chapter 11 bankruptcy, and even than chapter 13 bankruptcy, which results in lower legal fees. This can reduce the risks of filing for bankruptcy so that the debtor gets their intended results. If cost is the factor that keeps you from reaching out to a bankruptcy attorney for more information about your case, start the process with our firm. Our lawyers offer free consultations so you can learn more about the bankruptcy process, free of charge. Eligible clients can also file their cases using our Zero Down payment plan option. For more information, call 480-780-2211 to schedule your free consultation with our firm.

Want To Learn More About Bankruptcy With No Risk Or Obligation? Start Here.

Whether you’re a major seafood chain with restaurant locations across the country or just a normal person trying to make ends meet every month, bankruptcy can be of assistance. You should consider retaining skilled bankruptcy counsel to derive the full benefits of your bankruptcy case. Our staff and attorneys are experienced in taking chapter 7 and chapter 13 cases from start to finish in Arizona. With offices in Phoenix and Tucson, we are constantly looking for new ways to meet our clients’ needs. We also offer free consultations and payment plan options starting at Zero Dollars Down. To learn more, contact us to schedule your free consultation by calling 480-780-2211.