Thai Union made another headline this week after the report of Red Lobster examining the management of its owner, Thai Union itself, for the unlimited shrimp buffet campaign that resulted in $11 million in losses in 2023, following the filing for Chapter 11 bankruptcy of the seafood restaurant last Sunday.
Thai Union Public Company Limited (SET: TU) denied to comment when contacted by “Kaohoon,” but the public relation department left a short comment, saying that the company and Red Lobster have been working together for more than 30 years, and hope that the relationship between both companies will remain intact.
The PR team added that TU is confident that the restructuring under the court order would result in a better financial management that will strengthen Red Lobster’s operations in the long-term.
Red Lobster, burdened with $294 million in debt, intends to restructure by closing underperforming locations and selling the remainder to a consortium of lenders led by Fortress Investment Group.
Despite being a major player in the global seafood market, Red Lobster cited issues such as poor management decisions, inflation, rent expenses, and intensified competition as contributing factors to its financial struggles. The company reported a $76 million net loss in 2023 and recently shuttered 93 restaurants in a bid to streamline operations and reduce costs.
Thai Union, a Thai listed company, booked a one-time non-cash impairment charge of THB 18.4 billion (USD 527 million) during the fourth quarter last year after announcing its intention to pursue an exit of its minority investment in Red Lobster.
