Red Lobster Preparing To File Bankruptcy

[Twin Tiers Living 428]

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Per Restaurant Business Online, the seafood-chain, which has around 650 locations across the United States, has struggled in recent years due to leadership troubles and strategic missteps. The company's financial struggles were magnified by economic hardships that have impacted a majority of American businesses since the beginning of the COVID-19 pandemic. 

Thai Union Group made the decision to cut ties with Red Lobster and look for a buyer in January, according to the outlet, which reported that Red Lobster suffered a $33 million loss in 2022.

The outlet attributed those losses to less Americans choosing to eat out at restaurants and an increase in food and labor costs. Red Lobster closed 16 locations, per the outlet.

 

Read more here.

[Zapp Brannigan 170]

3 hours ago, TTL News said:

Read more here.

Just had some red lobster over the weekend and it was pretty good. Love the fact that you can just buy the biscuits by the dozen.

[Chris 2,774]

We haven’t been in a few years and honestly don’t feel like we’ve missed much based on what I remember of our last visit.

Im not surprised, and I think we’ll see this happen to more places as time goes on. We don’t eat out nearly as often as we used to and when we do, we try our best to go to someplace that’s locally owned and operated. 

[Zapp Brannigan 170]

13 hours ago, Chris said:

We haven’t been in a few years and honestly don’t feel like we’ve missed much based on what I remember of our last visit.

Im not surprised, and I think we’ll see this happen to more places as time goes on. We don’t eat out nearly as often as we used to and when we do, we try our best to go to someplace that’s locally owned and operated. 

Yeah I don't frequent to many chain restaurants when we do its mostly Texas Roadhouse. Surprisingly this time I got the red lobster to go and it was better than when we ate in person last year when we went. I also skipped getting lobster because last time it just didn't taste the greatest. This time just went with one of the pick 4 shrimp and it was great.

 

[Chris 2,774]

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CNN — Red Lobster, which brought affordable shrimp and lobster to middle-class America and grew to become the largest seafood restaurant chain in the world, has filed for bankruptcy.

The company said it had more than $1 billion in debt and less than $30 million in cash on hand. It plans to sell its business to its lenders, and in turn, it will receive financing to stay afloat. It expects to continue to close restaurants in the meantime.

 

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[Ann 358]

We haven’t gone to Red Lobster in a couple years.

[Chris 2,774]

Neither have we, and I’m pretty sure we haven’t missed much at all.

[Twin Tiers Living 428]

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CNN — When seafood conglomerate Thai Union Group became Red Lobster’s leading shareholder in 2020, gaining 49% control of the chain, Red Lobster employeeswere assured Thai Union would not interfere in key decisions.

Thai Union will “not be involved in Red Lobster’s day-to-day operations, including [its] supply chain standards and processes,” according to a document titled “Seafood Supplier Talking Points” viewed by CNN that was approved by top Thai Union and Red Lobster executives.

“We intend to maintain relationships with all current seafood suppliers,” the talking points said.

Those pledges didn’t last.

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 headquarters, serving in top roles and closely directing the largest seafood restaurant chain in the world.

 

Read more here. 

[Adam 458]

theres stories going around the net that a hedge fund company bought up the restaurants with the main interest in acquiring the land they were on, then leasing/renting it to them at inflated prices which basically bled the company slowly

[Kevin 400]

11 hours ago, Adam said:

theres stories going around the net that a hedge fund company bought up the restaurants with the main interest in acquiring the land they were on, then leasing/renting it to them at inflated prices which basically bled the company slowly

Those are the stories I have seen that make the most sense. The people that run hedge funds only care about $$$.

[Kevin 400]

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The technique, colloquially known as asset-stripping, has been a part of retail chain failures such as Sears, Mervyn’s and ShopKo as well as bankruptcies involving hospital and nursing home operations like Steward Healthcare and Manor Care. All had been owned by private equity.

Asset-stripping occurs when an owner or investor in a company sells off some of its assets, taking the benefits for itself and hobbling the company. This practice is favored among some private-equity firms that buy companies, load them with debt to finance the purchases and hope to sell them at a profit in a few years to someone else. A common form of asset-stripping is known as a sale/leaseback and involves selling a company’s real estate; this type of transaction hobbled Red Lobster.

 

https://finance.yahoo.com/news/private-equity-rolled-red-lobster-180041614.html