It could be the tip of an period for beloved seafood chain Pink Lobster, which formally declared chapter on Monday after months of hypothesis and dozens of abrupt restaurant closures.
Now, the corporate is talking out to loyal prospects — and investigating the position that its shrimp provider could have performed in its demise.
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In a letter posted to social media, Pink Lobster thanked prospects for his or her practically 5 a long time of loyalty and warranted the plenty that the chain wasn’t going wherever.
We’re right here to have fun each second, massive or small, with our valued visitors. pic.twitter.com/JmAoNGP4a8
— Pink Lobster (@redlobster) Could 21, 2024
“Chapter is a phrase that’s typically misunderstood. Submitting for chapter doesn’t imply we’re going out of enterprise,” Pink Lobster wrote. “In reality, it means simply the other. It’s a authorized course of that enables us to make modifications to our enterprise and our value construction in order that Pink Lobster can proceed as a stronger firm going ahead.”
Pink Lobster famous that firms together with Delta Airways and Hertz “emerged stronger” after submitting for Chapter 11 (Delta in September 2005, Hertz in Could 2020) and located methods to bounce again.
“Birthdays, graduations, anniversaries, and sure, weddings. We have been right here for all of them,” the chain penned. “Pink Lobster is set to be there for these moments for generations to return.”
Pink Lobster’s downfall was a gradual burn, primarily blamed on an $11 million loss in November 2023 because of the chain rollout of an “Infinite Shrimp” promotion. The deal provided prospects all of the shrimp they may eat for $20, and it proved to be a bit too well-liked.
Final week, it was reported that shops had begun shuttering with out warning across the nation, with dozens auctioning off all of their furnishings and tools on-line and a few staff claiming they got no discover forward of time.
In a submitting on Sunday, Pink Lobster CEO Jonathan Tibus referred to as out former CEO Paul Kenny and Pink Lobster’s seafood provider and proprietor, Thai Union, relating to choices made surrounding the “Infinite Shrimp” promotion and that Pink Lobster is “at present investigating the circumstances” across the resolution to make the promotion everlasting as an alternative of limited-time.
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“I perceive that Thai Union exercised an outsized affect on the Firm’s shrimp buying,” Tibus wrote. “[Red Lobster is] exploring the influence of the management Thai Union exerted, in live performance with Mr. Kenny and different Thai Union-affiliated entities and people, and whether or not actions taken in mild of those events’ various pursuits had been applicable and per relevant duties and obligations to Pink Lobster.”
Thai Union accomplished its buy of Pink Lobster in 2020.