Investigation conducted into Thai Union's role in Red Lobster's "endless shrimp" promotion losses after the bankruptcy declaration.

Red Lobster claimed that the disaster was due to a pattern of bad management by the international seafood company, which owns most of its stock and supplies shrimp to its restaurants. Red Lobster has 550 casual dining locations across the country and offers customers an endless shrimp meal for $20. In May 2023, former CEO Paul Kenny made it a year-round, permanent option despite "significant pushback" from other members of the management team.

Shrimp shortages became severe very quickly for several Red Lobster restaurants. The petition claims that CEO Jonathan Tibus ended contracts with two shrimp suppliers and gave Thai Union an exclusive contract, which raised costs. According to Tibus, Thai Union had a disproportionate impact on the company's shrimp purchases. The circumstances surrounding these choices are currently being looked into by the Debtors. On Monday, it was not possible to immediately obtain a comment from Thai Union.

Red Lobster plans to sell its struggling locations to Fortress Investment Group and shut down the rest, as it faces a debt of $294 million. Red Lobster is a huge seafood restaurant located in Orlando, Florida. It has more than 36,000 employees. It has 54 locations outside the US. It buys 16% of rock lobsters sold worldwide and 20% of all lobster tails sold in North America.

According to Red Lobster, the company's profits have been affected by bad management decisions, high inflation, expensive rent, and increased competition. In order to reduce expenses, it has liquidated 93 outlets, posting a $76 million net deficit in 2023.