Thai Union Ran Red Lobster To The Ground, Insiders Howl

When seafood conglomerate Thai Union Group became Red Lobster’s leading shareholder in 2020, gaining 49% control of the chain, Red Lobster employees were assured Thai Union would not interfere in key decisions, Nathaniel Meyersohn reported for CNN.

Red Lobster has since closed down more than 90 restaurants and filed for Chapter 11 bankruptcy. I Photo: Mike Mozart Flickr

By 2022, representatives from Thai Union in Thailand, whose $4 billion empire includes brands like Chicken of the Sea and John West Foods, were embedded in Red Lobster’s Orlando, Florida, headquarters, serving in top roles and closely directing the largest seafood restaurant chain in the world.

They scrapped deals with suppliers and forced the chain to buy shrimp only from Thai Union. Worse, they regularized the “ultimate $20 endless shrimp” to the dismay of Red Lobster veterans who protested that the chain would not make any money on it.

Yet, the side salad wasn’t free, to the annoyance of diners.

Compounding the problem was the loss of top executives and staff who couldn’t take the changes imposed by Thai Union, which never managed restaurants.

Now, Red Lobster has drowned in a relentless supply of Thai Union-supplied shrimp. Red Lobster closed down more than 90 restaurants and filed for Chapter 11 bankruptcy over the weekend.

It plans to sell its business to its lenders. In turn, Red Lobster will receive financing to stay afloat.

Thai Union announced in January it was divesting from Red Lobster and taking a $530 million loss on its investment. A month later, Thai Union CEO Chansiri said the company was looking to sell the chain.