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Red Lobster Exits Chapter 11, Sold to Fortress-Backed RL Holdings

6/27/2026

Summary

Red Lobster Bankruptcy

Red Lobster filed for Chapter 11 bankruptcy in May 2024 after defaulting on a $275 million loan from Fortress.
Its $20 Endless Shrimp promotion was called a “car crash” that cut revenue.
Creditors sued Thai Union in Florida in May 2024, alleging it arranged 2023 contracts favoring it and seeking a jury trial.
Red Lobster left Chapter 11 in September 2024 after being bought by RL Holdings, led by Fortress, which owns the brand.

Summary

Red Lobster Sues

The Red Lobster GUC Trust, formed September 2024, sued Thai Union for self-dealing, fraudulent transfers, and a “culture of fear.”
Paul Kenny, a Thai Union employee, forced Red Lobster to buy shrimp only from Thai Union, banning a longtime supplier.
The arrangement gave Thai Union 46% of Red Lobster’s shrimp purchases from September 2023 to February 2024.
Despite CEO Damola Adamolekun’s pledge that endless shrimp would never return, a limited-time “Marry Me Shrimp” dish appeared in April 2026.

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Red Lobster Bankruptcy

Red Lobster filed for Chapter 11 bankruptcy in May 2024 after defaulting on a $275 million loan from Fortress.
Its $20 Endless Shrimp promotion was called a “car crash” that cut revenue.
Creditors sued Thai Union in Florida in May 2024, alleging it arranged 2023 contracts favoring it and seeking a jury trial.
Red Lobster left Chapter 11 in September 2024 after being bought by RL Holdings, led by Fortress, which owns the brand.

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