Earlier this year, Thai Union, the largest investor in the largest seafood restaurant chain in the country, announced it was seeking to sell its stake.
A sign is posted on the exterior of a Red Lobster restaurant on April 17, 2024 in Rohnert Park, California.At least 99 locations of Red Lobster are being auctioned off amid questions about the stalwart seafood chain's long-term future.he was leading the closure of more than 50 Red Lobster locations, with the restaurants' equipment to be auctioned off.showed closure locations across the U.S.
The closures represent about 15% of the company's approximately 700 locations, though it remains the largest seafood restaurant chain in the U.S. Red Lobster has struggled with a significant debt load, unfavorable lease terms, executive turnover and ill-advised strategies including an all-you-can-eat-shrimp promotion last fall that resulted in a significant loss for the company.Earlier this year, Thai Union, the largest investor in Red Lobster, announced it was seeking to exit its position.
"The combination of Covid-19 pandemic, sustained industry headwinds, higher interest rates and rising material and labor costs have impacted Red Lobster, resulting in prolonged negative financial contributions to Thai Union and its shareholders," Thiraphong Chansiri, Thai Union Group's CEO, said in a statement.
"After detailed analysis, we have determined that Red Lobster's ongoing financial requirements no longer align with our capital allocation priorities and therefore are pursuing an exit of our minority investment."
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