If you are a fan of Cheddar Bay Biscuits and or bottomless shrimp you should know that Chapter 11 bankruptcy could be in the future for that brand. Red Lobster seems to be having some problems, as top-level leadership has been shuffled around again, and the main holding company behind the brand has announced plans to 'divest'.

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According to The Street, the group Thai Union Group is looking to shed itself from Red Lobster:

“During the past years, the combination of Covid-19 pandemic, sustained industry headwinds, higher interest rates and rising material and labor costs have impacted to Red Lobster business resulting in prolonged negative financial contributions to the company and its shareholders,” Thai Union said in a Jan. 16 media release. “...After detailed analysis, the board of directors has determined that Red Lobster’s ongoing financial requirements no longer align with our capital allocation priorities and therefore the company is pursuing an exit of the minority investment.”

Red Lobster Sold To Golden Gate Capital For 2.1 Billion
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The Street also recently wrote that changes to the upper levels of management are signaling that the Red Lobster brand could be ready to make one of three moves, and the most likely is declaring Chapter 11 bankruptcy.

Red Lobster recently according to The Street "replaced its CEO Horace Dawson, who is retiring, with Jonathan Tibus, managing director of management consultant Alvarez & Marsal. Tibus is considered a turnaround expert who helped Kona Grill and Krystal through their Chapter 11 bankruptcy filings."

With all of that information, knowing that a CEO that specializes in 'turning brands around' is coming in, and a holding company that wants out, it's no wonder the label of 'Zombie Brand' is being tossed around with Red Lobster.

FoodserviceResults CEO Darren Tristano told seafoodsource.com that he considered the brand a 'Zombie Brand' as it seems to be wandering between life and death so to speak. Will the eventual new owners sell off a bunch of restaurants? Will Red Lobster go into Chapter 11 bankruptcy, or will it just fail altogether?

Red Lobster has more than 800 locations nationwide, and 12 locations here in Minnesota including St. Cloud, Maple Grove, Duluth, and Rochester.

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