When a seafood conglomerate acquired a majority stake in Red Lobster, employees were told that the company would not interfere in key decisions. However, by 2022, representatives from the conglomerate were embedded in Red Lobster’s headquarters and directing the chain’s operations. As a result, Red Lobster has filed for bankruptcy, with former employees attributing the decline to the conglomerate’s decisions. The article highlights how Thai Union, the conglomerate in question, drove the chain’s fall through poor management and damaging decisions. These decisions included removing veteran Red Lobster leaders and cutting relationships with previous suppliers, leading to a relentless supply of shrimp from Thai Union. Changes made by the conglomerate, such as raising prices, cutting labor, and reducing investment in dining room upgrades, also negatively affected sales. The article concludes by providing a brief history of Red Lobster’s ownership changes and the decision to divest from the chain.
