In a surprising turn of events, Red Lobster, the popular seafood chain, has abruptly closed at least 48 of its locations across the United States on Monday. These closures have sparked speculation about the company's financial troubles, with reports indicating that Red Lobster suffered a loss of $11 million during the third quarter of 2023.

Red Lobster, which operates approximately 650 locations nationwide, has marked some of its outlets as "temporarily closed" on its official website. The closures come in the wake of parent company Thai Union Group's announcement to divest, which had raised concerns about the chain's potential bankruptcy.

Newsweek reached out to Red Lobster for comment on the recent closures, but no response has been received yet. Meanwhile, the official Red Lobster account on X, formerly Twitter, has remained silent, except for directing customers with complaints to contact the company through direct messages.

The closures have not gone unnoticed by the public, as some individuals have shared their personal experiences. Actress Vivica A. Fox, known for her role in the film "Set It Off," posted on social media about her visit to a Red Lobster restaurant for Mother's Day on May 12, just before the closures took effect. While the post received attention from the company, it appears to be an isolated response on the platform.

Local branches of Red Lobster have also been affected by the sudden closures. The mayor of Danville, Illinois, Rickey Williams Jr., stated on Facebook that the city's Red Lobster had laid off its entire staff without any prior notice. Despite a strong performance and ranking 15th in customer service and satisfaction among over 600 stores last year, the restaurant was forced to shut down along with nearly 120 other locations.

The closure of these Red Lobster outlets has had significant ramifications for employees, with around 6,500 individuals estimated to be impacted by the layoffs, according to MacroEdge, a company specializing in economic intelligence. To liquidate assets, the restaurant liquidator TAGeX Brands began auctioning off kitchen equipment, furniture, and other items from more than 50 Red Lobster locations on Monday.

Reports indicate that Red Lobster's financial troubles can be traced back to its "Ultimate Endless Shrimp" promotion, which Thai Union Group made a permanent offer. While the promotion initially increased traffic to the chain by 4 percent, it ultimately contributed to the reported $11 million losses during the third quarter of 2023.

CFO Ludovic Regis Henri Garnier of Thai Union Group acknowledged the misstep during a meeting with investors in November 2023, stating that the intention behind the promotion was to boost restaurant traffic, but it did not yield the desired results.

As Red Lobster grapples with these challenges, the fate of the remaining locations and the future of the company remain uncertain. Only time will tell if Red Lobster can navigate its way back to profitability and reestablish itself as a beloved seafood destination for customers across the country.