Saving Seafood

Thai Union claims Red Lobster owes it nearly USD 4 million due to demand forecast discrepancies

July 17, 2024 — Thai Union has claimed in a court filing that restaurant chain Red Lobster owes it, along with its subsidiary Tri-Union Frozen Products, which conducts business as Chicken of the Sea Frozen Foods, nearly USD 3.7 million (EUR 3.4 million).

Thai Union, a longtime seafood supplier and former part-owner of Red Lobster, said in a filing to U.S. Bankruptcy Court in Orlando, Florida, that Red Lobster’s financial distress and “abrupt reductions of purchasing volumes caused Thai Union to accumulate a “high level” of excess inventory – valued at around USD 22.9 million (EUR 21 million).

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Red Lobster exploring reorganization instead of continuing with bankruptcy

July 11, 2024 — Nearly two months after filing for Chapter 11 bankruptcy, restaurant chain Red Lobster announced at a court hearing on 10 July it is considering pursuing an alternate path: reorganization

The Orlando, Florida, U.S.A.-based chain, which, for now, operates 570 restaurants, is still aiming to sell its company either to Fortress Credit – a private investment firm that focuses on distressed companies, has USD 48 million (EUR 44.3 million) under management, and is Red Lobster’s biggest creditor – or to other potential buyers.

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Red Lobster vying to keep restaurants open as creditors continue to come forward

July 9, 2024 — After closing more than 100 locations following the announcement of its bankruptcy, restaurant chain Red Lobster is hoping it can successfully negotiate leases on several additional locations that are on the chopping block.

At a creditor meeting held on 28 June, Red Lobster CEO Jonathan Tibus said the chain will close several additional restaurants because negotiations with landlords on the locations’ leases fell through.

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Fortress Credit early favorite to buy Red Lobster in auction approved for July

June 19, 2024 — Fortress Credit Corp. has been confirmed as the stalking horse bidder in the auctioned sale of Red Lobster, approved to take place in late July by the judge overseeing the Orlando, Florida, U.S.A.-based seafood restaurant chain’s bankruptcy proceeding.

Fortress, a private investment firm with USD 48 million (EUR 44.7 million) under management and a focus on distressed companies, has become one of Red Lobster’s largest creditors.

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Thai Union fights back against Red Lobster mismanagement accusations

May 22, 2024 — Thai Union is fighting back against accusations from Red Lobster CEO Jonathan Tibus that its mismanagement led to the company’s Chapter 11 bankruptcy filing on 20 May.

In court documents, Red Lobster revealed it has initiated an investigation of Thai Union’s involvement in the failure of its Ultimate Endless Shrimp promotion, as well as its “undue influence” on shrimp purchasing.

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Red Lobster files for bankruptcy, says it’s investigating Thai Union’s “undue influence” in shrimp-purchasing decisions

May 20, 2024 — Red Lobster officially entered a Chapter 11 bankruptcy filing on Monday, 20 May.

The beleaguered restaurant chain filed for bankruptcy protection in U.S. Bankruptcy Court in Orlando, Florida, U.S.A., where it is based. Red Lobster said it intends to use the process to drive operational improvements, simplify the business through a reduction in locations, and “pursue a sale of substantially all of its assets as a going concern.”

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Red Lobster exploring possible bankruptcy filing

April 17, 2024 — Less than a month after hiring a CEO that specializes in restructuring failing restaurant brands, struggling seafood restaurant chain Red Lobster is exploring bankruptcy.

Executives with Orlando, Florida, U.S.A.-based Red Lobster, which operates around 650 restaurants globally, have been seeking advice from the Atlanta, Georgia, U.S.A.-based King & Spalding law firm as they consider filing Chapter 11 bankruptcy, Bloomberg reported. The news service cited people with knowledge of the matter who asked not to be identified.

The struggling restaurant chain is considering a Chapter 11 filing to “shed some long-term contracts and renegotiate a swath of leases,” according to the sources. The company’s cash flows have been weighed down by onerous leases and labor costs, among other issues.

The beleaguered restaurant chain has struggled in recent years, and incurred significant losses from Covid-19 restaurant closures. Amid the ongoing financial struggles, Thai Union announced it would pursue an exit from its strategic partnership and minority investment in Red Lobster Master Holdings. Thai Union first  invested in the restaurant chain in 2016 and increased that investment in 2020.

Read the full article at SeafoodSource