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. 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. Now, Red Lobster has drowned in a relentless supply of Thai Union-supplied shrimp. Red Lobster filed for Chapter 11 bankruptcy Sunday, and it plans to sell its business to its lenders. In turn, Red Lobster will receive financing to stay afloat. Thai Union’s damaging decisions drove the pioneering chain’s fall, according to 13 former Red Lobster executives and senior leaders in various areas of the business as well as analysts. All but two of the former Red Lobster employees spoke to CNN under the condition of anonymity because of either non-disclosure agreements with Thai Union; fear that speaking out would harm their careers; or because they don’t want to jeopardize deferred compensation from Red Lobster. https://lnkd.in/eAcjcH2D
Thanks for sharing! We have a related article about the situation between Red Lobster and Thai Union Group. Check it out! https://www.linkedin.com/feed/update/urn:li:activity:7231863300760727553
This is such a shame. RL was such a special place for so many of us….. I have always been so proud to have spent my beginning professional years in the culture that Bill Darden and Joe Lee created. “You are only as good as your people”, looks like the people of Thai Union gives us something to think about 😢
Michael Tucker
6mo
Couldn’t agree more
Jo Ann Woodward
6mo
Dead lobster
Director of Sales and Marketing at Adelphia Seafood
6moThis is forgetting what started the death spirial - When Golden Gate took over and sold the property the restaurants were on (forcing them to pay rent - expense) and stripped the bones, the writing was on the wall. Darden ran a solid balanced business (even with the labor focus we had to live through) call this what it was - Golden Gate ran sacked a business and then sold it to a sucker who is taking a very hard fall....sadd for so many who worked in these restaurants for years.