New owners for Red Lobster revealed - as it emerges the debt-ridden chain owes $21 million for shrimp alone

Bankrupt Red Lobster announced its caller owners Monday, while besides letting it gaffe that it whitethorn beryllium its genitor institution an eye-watering magnitude for millions of pounds of shrimp.

RL Purchaser LLC, a entity comprised of Red Lobster's lenders, made nan first bid that has truthful acold gone unchallenged by immoderate extracurricular parties.

The troubled seafood concatenation revenge for bankruptcy successful May days aft shuttering astir 100 restaurants successful nan US. 

There's already been whisperings of much closures if landlords aren't capable to renegotiate rents downward.

Judge Grace E. Robson of nan US Bankruptcy Court of nan Middle District of Florida will norm connected July 29 whether this projected waste tin proceed.

In nan meantime, Red Lobster has astir $300 cardinal successful debt, immoderate of which is wrapped up successful nan 3.75 cardinal pounds of shrimp it purchased from its existent proprietor Thai Union Group, according to a archive revenge pinch nan bankruptcy tribunal by Thai Union's lawyers.

Thai Union, a Thailand-based shaper of seafood based products, estimates this magnitude of earthy shrimp is worthy astir $20.6 million. 

It came to this valuation based connected nan worth of nan inventory itself, arsenic good arsenic costs associated pinch further ingredients for nan breaded shrimp, packaging, retention and liking that's still accruing connected Red Lobster's balance.

Thai Union's lawyers explicate that passim 2023, Red Lobster was many times 'increasing their forecasted demand' for shrimp, presumably to support up with its $20 unlimited shrimp promotion it launched successful June.

But request changed successful October past twelvemonth erstwhile Red Lobster 'unexpectedly and dramatically reduced their forecast aggregate times,' Thai Union claimed.

This was astir nan clip bosses astatine Red Lobster were realizing their tragic mistake, deciding to raise nan value of nan unlimited shrimp woody to $22 astatine prime locations to recoup losses. 

Thanks to nan request downgrade from its subsidiary, Thai Union says it accumulated 'an oversupply of astir 5,850,000 pounds of 14/16 prebreaded coconut and 21/23 pre-breaded ample shrimp,' some of which are civilization items.

Then, Red Lobster allegedly asked for dramatically less 'Calabash' shrimp successful November, different civilization product, starring Thai Union to get stuck pinch different 1.6 cardinal pounds of shellfish. 

Thai Union now claims, aft Red Lobster's debtors purchased $13.07 cardinal worthy of each this shrimp, that it is still owed 'approximately $3,684,541 successful related costs including ingredients, packaging, storage, and interest.'

In a filing connected June 28, nan debtors alternatively claimed they beryllium $0, citing nan associated proviso statement Red Lobster and Thai Union entered into successful 2019. 

Since Thai Union objected to nan cure magnitude put guardant by nan debtors, location will beryllium a tribunal proceeding successful August to adjudicate this indebtedness dispute, but only aft nan waste to nan lenders is completed.

Experts and moreover executives astatine Thai Union person acknowledged that Red Lobster's unlimited shrimp deal, a gambit it introduced successful June pinch nan intent to person beryllium permanent, was a colossal miscalculation that sent nan institution careening into financial insolvency.

Thai Union CEO Thiraphong Chansiri, 58, even said retired of vexation that he'll ne'er eat lobster again aft nan bankruptcy. 

Once customers recovered retired they could gorge themselves pinch arsenic galore shrimp arsenic they desired past summer, they sewage correct to activity bleeding nan edifice dry.

One woman managed to eat 108 shrimp successful 4 hours.

'I group a caller grounds astatine my section Red Lobster, this is my top accomplishment successful life,' nan poster explained successful her video. 

More group began to return advantage of nan connection than nan institution expected. But alternatively than propulsion nan deal, bosses kept it moving for six months - and nan losses dwarfed nan magnitude mislaid for endless crabs connection it ran 20 years earlier. 

All told, Thai Union was forced to constitute disconnected $500 cardinal arsenic it looks to free itself from nan financial anchor that is Red Lobster.