[Cont'd From DSLR] Red Lobster Files For Bankruptcy

HELLFIRE · 2025-02-13T04:30:28+00:00

Was following this story at DSLR for awhile, bringing over here. These updates just hit my radar : https://www.seafoodsource.com/news/business-finance/fortress-s-usd-65-million-suit-against-thai-union-moves-forward-as-red-lobster-rolls-out-new-promotions -- Fortress’s USD 65 million suit against Thai Union moves forward as Red Lobster rolls out new promotions (paywall) Fortress Credit, one of the new owners of Orlando, Florida, U.S.A.-based restaurant chain Red Lobster, sued Thailand-based seafood conglomerate Thai Union for USD 65 million (EUR 63 million) late last year. Though the lawsuit was recently confirmed to be moving forward, both parties have hinted they may be open to settling the case in the future. Fortress originally filed the complaint against Thai Union late last year after Red Lobster exited its bankruptcy process, saying Thai Union had guaranteed payment to Red Lobster of up to USD 65 million in a 2022 financing agreement when the Southeast Asian firm was one of the minority owners of Red Lobster. Thai Union’s board of directors agreed to provide the funding in August 2022 “to support and enhance [Red Lobster’s] liquidity management capabilities,” Thai Union said in its quarterly earnings report at the time. ... https://retailwire.com/red-lobster-lobsterfest-2025-gloat/ -- Red Lobster Says Lobsterfest 2025 Is the ‘GLOAT’ Lobsterfest is returning to Red Lobster, and this year it’s the GLOAT: The Greatest Lobsterfest of All Time. Red Lobster is making 2025 truly unforgettable for its customers. A press release states the eatery has debuted 10 tasty dishes and a first-time Lobsterfest upgrade, the option to Create Your Own meal. This means that customers can build the plate of their seafood dreams by selecting two or three lobster entrées and customizing their perfect feast. Also new to Red Lobster are the Lobster & Shrimp Linguini and a Lobster Roll. Legendary Red Lobster favorites including hush puppies and popcorn shrimp are back and will continue to be served with endless Cheddar Bay Biscuits. ... Since taking the helm, Adamolekun revamped its menu, reintroduced fan favorites, and added happy hour at many restaurants nationwide. Adamolekun shared with Business Insider that the company has shifted its goals to invest in its customers, simplify and improve operations, deliver consistent products, revitalize its marketing efforts, and upgrade its technology systems and infrastructure. ... Regards

px_eliezer_

Hydraglass Theoretically this is one of the things AI should absolutely excel at and be a huge boom to businesses.

But the downfall of Red Lobster was from stupidity, double-dealing, greed, and a failure to understand human factors.

More A.I. is not what is needed.

Aside from everything else, something I never saw mentioned is that people have become pigs.

In the old days people would have a little self-control regarding “all you can eat” specials, but they don’t any more.

So it became more and more a losing situation for restaurants to have all-you-can-eat.

InternetJeff

px_eliezer_ In the old days people would have a little self-control regarding “all you can eat” specials, but they don’t any more.

Something that I think would be funny to see in a restaurant:

Manager approaches man in buffet line and says: “Excuse me Sir, but that is all you can eat for $9.99.”
😁

Hydraglass

px_eliezer_ Aside from everything else, something I never saw mentioned is that people have become pigs.

I would say its more a reminder of life in late-stage capitalism. When the customers have gotten squeezed at every possible turn and deal with shrinkflation, corporate greed, never-ending price rising, demands for 20-30% tipping in restaurants, ever-diminishing portion sizes and other similar corporate shenanigans to try to turn a slightly bigger profit every quarter, an “all-you-can-eat” menu option becomes nothing more than a challenge, a taunt, even a meme in itself saying “here’s your chance to get back at us, go for it!”

HELLFIRE

Isn’t that one of the plot threads of The Simpsons “New Kid on the Block.” – https://en.wikipedia.org/wiki/New_Kid_on_the_Block

Regards

HELLFIRE

https://alohastatedaily.com/2026/06/23/red-lobster-closes-waikiki-location/ – Red Lobster closes Waikīkī location

… The chain’s only location in the state, found at 1765 Ala Moana Blvd. in Waikīkī, permanently closed on June 21, a corporate spokesperson confirmed to Aloha State Daily. … A picture shared on social media shows a sign on the restaurant’s door that notes its closure and thanks customers for “32 years of memories.” …

Regards

Hydraglass

HELLFIRE I always thought that was an odd location for a Red Lobster - I remember walking by it many times when we stayed next door at the Hilton. There was another seafood restaurant almost adjacent (Chart House), a sushi restaurant down the block, several other much nicer restaurants in the surrounding hotels, and it was in an area that would (I would consider) be essentially inaccessible for local Honolulu residents. It was in an area of primarily foot traffic, between the harbor and the hotel strip that runs along Ala Moana from the harbor to the zoo. It’s not a place for chain restaurants, fast food, or other mass-produced goods. Its an area of expensive beach-front hotel rooms with well heeled customers experiencing (for many) once in a lifetime vacations. Given a week in Waikiki with 7 different dinners, and 50 great locally owned and operated restaurants within a 10 minute walk, Red Lobster seemed horribly out of place.

HELLFIRE

Hydraglass Given a week in Waikiki with 7 different dinners, and 50 great locally owned and operated restaurants within a 10 minute walk

Thanks for the context there @Hydraglass . One does have to give that location credit that it hung on for 32 years….

shrugs

Regards

HELLFIRE

https://www.cnbc.com/2026/06/26/red-lobsters-endless-shrimp-promotion-was-a-car-crash-lawsuit-says.html – Red Lobster’s Ultimate Endless Shrimp promotion described as a ‘car crash’ for the company, lawsuit says

Red Lobster’s “Everyday $20 Ultimate Endless Shrimp” offering was described as a “car crash” in a new lawsuit.

“Thai Union doubled down on a campaign to squeeze out every drop of value that it could” from Red Lobster, creditors said.

Thai Union had pressed the restaurant chain to purchase increasing amounts of overpriced shrimp from it to handle the promotion, the lawsuit alleged.

https://fortune.com/2026/06/26/red-lobster-endless-shrimp-thai-union-lawsuit-squeeze-profits-bankruptcy/ – Red Lobster lost millions on its endless shrimp disaster. Shareholders say it was a ‘car crash’ designed to squeeze profits

… A May lawsuit filed in Orange County, Fla. by a trust representing shareholders alleged that Thai Union Group, one of the world’s largest seafood producers whose shares trade on the Stock Exchange of Thailand (SET), exploited its controlling stake, CNBC reported. … The shareholders claim they are owed millions after the chain filed for Chapter 11 bankruptcy in May 2024 and are also looking to dissolve some $32 million in transactions that Thai Union allegedly pressured the chain to enter into in 2023, Bloomberg reported. …

Regards

urbanriot

HELLFIRE ohhh I was initially thinking they were talking about the Endless Shrimp event they had going on recently and I was wondering why anyone would be upset about it because it was generating a lot of attention with Red Lobster. We went to it last month and it was great.

But no, those links are about the issues with the previous CEO…

As an aside, when we went to our Red Lobster last month it was pretty busy there.

HELLFIRE

Same story, but puts things into perspective alittle better : https://www.inc.com/amaya-nichole/new-lawsuit-claims-red-lobster-endless-shrimp-deal-was-deliberate-scheme/91366170 – New Lawsuit Claims Red Lobster’s $20 Endless Shrimp Deal Was a Deliberate ‘Car Crash’ Scheme

… Filed in May by a trust on behalf of Red Lobster’s creditors, the suit alleges that Thai Union—a Bangkok-based seafood conglomerate that processes and sells roughly $4 billion worth of seafood annually under brands including Chicken of the Sea—was aware as early as 2023 that Red Lobster was facing significant financial headwinds and risked insolvency. … “Thai Union treated the company as little more than a distribution arm for its own products, milking whatever value it could from Red Lobster, especially as the company became insolvent,” the lawsuit said. …

Regards

HELLFIRE

Recaps the lawsuit, but includes this little tibit : https://www.restaurantbusinessonline.com/financing/red-lobster-lawsuit-casts-endless-shrimp-fiasco-new-light – The all-you-can-eat shrimp deal helped spark the seafood chain’s 2024 bankruptcy. Was it a marketing mishap, or something more nefarious?

… Proving that Thai Union purposefully steered Red Lobster to buy more shrimp could be difficult, said Joseph Sabbagh, president of seafood consultant Sax Maritime Associates; shrimp prices were low at the time, he said, and Red Lobster has historically had strict specifications for its shrimp. … “If the allegations are true, as the plaintiffs are outlining, the evidence is extremely strong to withstand the defendants’ argument that they acted in good faith,” he said. …

…We’ll See…

Regards

HELLFIRE

https://www.restaurantbusinessonline.com/financing/red-lobster-unveils-restaurant-refresh-program – The seafood chain is updating some restaurants with a brighter, fresher look as it continues to recover from bankruptcy.

… The seafood chain unveiled a restaurant refresh program that is intended to make its locations brighter, fresher, warmer, and more welcoming while keeping many of the elements customers love about the brand, said Chief Global Development Officer Kristen Briede in an interview. … The first three refreshes, in Clarksville, Tennessee; Lancaster, Pennsylvania; and Kissimmee, Florida; will be completed next week, and the chain is currently assessing which restaurants to include in the next round of renovations … Red Lobster is not disclosing how much the refreshes will cost. …

“Looks nice in the renderings… how much is it going to cost?” 🤔

Regards

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