May 28, 2024 — Red Lobster is millions of dollars in arrears with several food distributors and suppliers, but only one seafood supplier has filed a claim for owed money in the restaurant chain’s bankruptcy petition so far.
Clackamas, Oregon, U.S.A.-based Pacific Seafood has filed a claim of USD 1,938.25 (EUR 1,782) in U.S. Bankruptcy Court in Orlando, Florida, U.S.A.
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.
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.”
April 28, 2024 — Red Lobster’s suppliers are being paid 48 days past their due dates.
Red Lobster submitted late payments for nearly 70 percent of its bills in October 2023, around 66 percent of its bills in November 2023, and 27.8 percent in December 2023, according to FSR Magazine.
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.
February 21, 2024 — A series of lawsuits related to sustainability claims and eco-labels have changed the seafood industry’s approach to marketing sustainability bona fides. Lawsuits filed against Mowi, Gorton’s, ALDI, Conagra, Bumble Bee Foods, and Red Lobster are either pending or have resulted in settlements.
The suits should be a wake-up call to the seafood industry that it needs to change its marketing practices, according to Arlin Wasserman – the founder and managing director of Changing Tastes, a seafood industry consultancy working at the intersection of sustainability, public health, information technology, demographics, and the changing role of the culinary professional. Wasserman, who was previously the vice president of sustainability at foodservice provider Sodexo, recently discussed how companies can adapt and modernize their marketing campaigns with SeafoodSource.
January 3, 2024 — A federal judge has denied Red Lobster’s motion to dismiss a class-action fraud lawsuit alleging that the restaurant chain sold Maine lobster and farmed shrimp that is not as sustainable as the company claims.
U.S. District Judge John A. Kronstadt denied the motion to dismiss the class action complaint, originally filed by Dezzi Rae Marshall in the U.S. state of California against Orlando, Florida, U.S.A-based Red Lobster. Marshall – represented by Richman Law and Policy, which has brought similar lawsuits against ALDI, Cooke, and other companies – alleges that the company’s shrimp and lobster are sourced from farms and fisheries that don’t meet high environmental standards.
March 21, 2022 — Sustainable Fisheries Partnership (SFP) has announced a new partnership with the Thai Union Group, one of the world’s leading seafood producers.
SFP was founded in 2006 and is a marine conservation organization working towards healthy oceans and sustainable seafood by leveraging the power of seafood buyers and retailers in the seafood supply chain. Thai Union is the world’s third largest seafood company as well as one of the largest producers of shelf-stable tuna products, and it owns and operates Chicken of the Sea and Red Lobster. The company’s annual sales exceed THB 141 billion (USD 4.5 billion, EUR 4.1 billion) and it has a workforce of more than 44,000 people.
Read the full story at SeafoodSource
March 8, 2022 — Several major U.S. seafood restaurant chains have ceased buying seafood from Russia following its invasion of Ukraine, an act of aggression that has had significant ripple-effects across the global seafood industry.
Orlando, Florida, U.S.A.-based Red Lobster has promised not to buy any products from Russia or of Russian origin, a spokesperson told SeafoodSource.
Read the full story at SeafoodSource
June 15, 2021 — A growing number of class-action lawsuits are being filed against seafood retailers and foodservice outlets, claiming their offerings do not meet their own sustainability claims.
Earlier this month, in a complaint filed in the U.S. Superior Court in the District of Columbia, ALDI was accused of false advertising and marketing, with the advocacy group GMO/Toxin Free USA alleging ALDI’s claim that its salmon is sustainably sourced is not credible. Earlier this year, Mowi agreed to settle a similar lawsuit for USD 1.3 million (EUR 1.1 million). The complaint alleged that the sustainability claims on its Ducktrap River of Maine smoked salmon were false.