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Red Lobster, once a prominent player in the U.S. dining industry, has closed numerous locations and is approaching bankruptcy due to years of mismanagement and a particular shrimp deal

Once a darling among restaurants in the United States generally for its ‘seafood’ and casual dining experience Red Lobster is in trouble. According to reports, having struggled for some time bankruptcy is almost inevitable.

The Lowdown

According to ABC News, restaurant chain Red Lobster has shuttered locations across more than twenty states amid long-term struggles. Rising labor costs and high lease costs across the United States have made for a financially steep situation. TAGEx Brands is leading the liquidation sale in a one-winner style deal where the top auction participant will take home everything.

A few years back, Red Lobster infamously expanded its endless shrimp deal and found out the hard way customers were ready to find out. The deal at the time cost far more than the chain could reportedly afford and is one of the major sticking points in its financial troubles.

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