It might be the tip of an period for beloved seafood chain Crimson Lobster, which formally declared chapter on Monday after months of hypothesis and dozens of abrupt restaurant closures.
Now, the corporate is talking out to loyal clients — and investigating the function that its shrimp provider could have performed in its demise.
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In a letter posted to social media, Crimson Lobster thanked clients for his or her practically 5 a long time of loyalty and guaranteed the lots that the chain wasn’t going wherever.
We’re right here to have fun each second, huge or small, with our valued company. pic.twitter.com/JmAoNGP4a8
— Crimson Lobster (@redlobster) Might 21, 2024
“Chapter is a phrase that’s usually misunderstood. Submitting for chapter doesn’t imply we’re going out of enterprise,” Crimson Lobster wrote. “In reality, it means simply the alternative. It’s a authorized course of that enables us to make adjustments to our enterprise and our price construction in order that Crimson Lobster can proceed as a stronger firm going ahead.”
Crimson Lobster famous that firms together with Delta Airways and Hertz “emerged stronger” after submitting for Chapter 11 (Delta in September 2005, Hertz in Might 2020) and located methods to bounce again.
“Birthdays, graduations, anniversaries, and sure, weddings. We have been right here for all of them,” the chain penned. “Crimson Lobster is decided to be there for these moments for generations to return.”
Crimson Lobster’s downfall was a sluggish burn, primarily blamed on an $11 million loss in November 2023 because of the chain rollout of an “Infinite Shrimp” promotion. The deal provided clients all of the shrimp they might eat for $20, and it proved to be a bit too common.
Final week, it was reported that shops had begun shuttering with out warning across the nation, with dozens auctioning off all of their furnishings and gear on-line and a few workers claiming they got no discover forward of time.
In a submitting on Sunday, Crimson Lobster CEO Jonathan Tibus known as out former CEO Paul Kenny and Crimson Lobster’s seafood provider and proprietor, Thai Union, concerning choices made surrounding the “Infinite Shrimp” promotion and that Crimson Lobster is “presently investigating the circumstances” across the resolution to make the promotion everlasting as a substitute of limited-time.
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“I perceive that Thai Union exercised an outsized affect on the Firm’s shrimp buying,” Tibus wrote. “[Red Lobster is] exploring the influence of the management Thai Union exerted, in live performance with Mr. Kenny and different Thai Union-affiliated entities and people, and whether or not actions taken in mild of those events’ various pursuits had been applicable and in keeping with relevant duties and obligations to Crimson Lobster.”
Thai Union accomplished its buy of Crimson Lobster in 2020.
