"Red Lobster's Collapse: A Tale of Bankruptcy and Industry Shifts"
Red Lobster has filed for Chapter 11 bankruptcy and plans to sell its business to lenders, citing damaging decisions by its leading shareholder, Thai Union Group. Despite initial promises not to interfere, Thai Union embedded executives in Red Lobster's operations, leading to supply chain disruptions, management turnover, and poor strategic decisions, including a disastrous $20 endless shrimp promotion. Former employees and analysts argue that Thai Union's mismanagement, rather than external factors like the pandemic, was the primary cause of Red Lobster's decline.