Crimson Lobster Speaks Out on ‘Misunderstood’ Chapter Submitting

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 prospects — and investigating the function that its shrimp provider might have performed in its demise.

Associated: Red Lobster Suddenly Shutters Dozens of Locations Without Warning Employees, Begins Auctioning Off Equipment

In a letter posted to social media, Crimson Lobster thanked prospects for his or her almost 5 many years of loyalty and warranted the plenty that the chain wasn’t going anyplace.

We’re right here to rejoice each second, large or small, with our valued friends. pic.twitter.com/JmAoNGP4a8

— Crimson Lobster (@redlobster) May 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 permits us to make adjustments to our enterprise and our value 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 May 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 come back.”

Crimson Lobster’s downfall was a sluggish burn, primarily blamed on an $11 million loss in November 2023 as a result of chain rollout of an “Countless Shrimp” promotion. The deal provided prospects 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 staff claiming they got no discover forward of time.

In a submitting on Sunday, Crimson Lobster CEO Jonathan Tibus called out former CEO Paul Kenny and Crimson Lobster’s seafood provider and proprietor, Thai Union, relating to selections made surrounding the “Countless Shrimp” promotion and that Crimson Lobster is “at the moment investigating the circumstances” across the determination to make the promotion everlasting as a substitute of limited-time.

Associated: Endless Shrimp Deal Is Too Popular, Red Lobster Loses $11M

“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 according to relevant duties and obligations to Crimson Lobster.”

Thai Union completed its buy of Crimson Lobster in 2020.