It can be the tip of an week for cherished seafood chain Crimson Lobster, which formally declared chapter on Monday later months of hypothesis and dozens of abrupt eating place closures.
Now, the corporate is talking out to unswerving consumers — and investigating the position that its shrimp provider could have performed in its death.
Indistinguishable: Crimson Lobster Abruptly Shutters Dozens of Places With out Ultimatum Staff, Starts Auctioning Off Apparatus
In a letter posted to social media, Crimson Lobster thanked consumers for his or her just about 5 many years of constancy and confident the hundreds that the chain wasn’t going anyplace.
We’re right here to proclaim each and every hour, obese or mini, with our valued visitors. %.twitter.com/JmAoNGP4a8
— Crimson Lobster (@redlobster) Would possibly 21, 2024
“Bankruptcy is a word that is often misunderstood. Filing for bankruptcy does not mean we are going out of business,” Crimson Lobster wrote. “In fact, it means just the opposite. It is a legal process that allows us to make changes to our business and our cost structure so that Red Lobster can continue as a stronger company going forward.”
Crimson Lobster famous that businesses together with Delta Airways and Hertz “emerged stronger” later submitting for Bankruptcy 11 (Delta in September 2005, Hertz in Would possibly 2020) and located tactics to bop again.
“Birthdays, graduations, anniversaries, and yes, weddings. We’ve been here for them all,” the chain penned. “Red Lobster is determined to be there for these moments for generations to come.”
Crimson Lobster’s downfall used to be a gradual burn, essentially blamed on an $11 million loss in November 2023 because of the chain rollout of an “Endless Shrimp” promotion. The trade in introduced consumers all of the shrimp they may consume for $20, and it proved to be a bit of too prevailing.
Endmost era, it used to be reported that shops had begun shuttering with out ultimatum across the nation, with dozens auctioning off all in their furnishings and gear on-line and a few workers claiming they got refuse understand forward of moment.
In a submitting on Sunday, Crimson Lobster CEO Jonathan Tibus referred to as out former CEO Paul Kenny and Crimson Lobster’s seafood provider and proprietor, Thai Union, referring to selections made state the “Endless Shrimp” promotion and that Crimson Lobster is “currently investigating the circumstances” across the resolution to manufacture the promotion everlasting rather of limited-time.
Indistinguishable: Unending Shrimp Trade in Is Too Prevalent, Crimson Lobster Loses $11M
“I understand that Thai Union exercised an outsized influence on the Company’s shrimp purchasing,” Tibus wrote. “[Red Lobster is] exploring the impact of the control Thai Union exerted, in concert with Mr. Kenny and other Thai Union-affiliated entities and individuals, and whether actions taken in light of these parties’ varying interests were appropriate and consistent with applicable duties and obligations to Red Lobster.”
Thai Union finished its acquire of Crimson Lobster in 2020.
