Two years after Red Lobster declared bankruptcy, its creditors are taking former CEO Paul Kenny, other ex-executives, and former majority owner Thai Union Group to court over the decisions they say drove the seafood chain into Chapter 11.
The Red Lobster Endless Shrimp lawsuit was filed in May by the chain’s creditors’ trust and accuses Thai Union of prioritizing its own financial interests while the company headed toward bankruptcy. TheGrio reported in April 2024 when Red Lobster first surfaced as an insolvency candidate, detailing how the $20 Endless Shrimp promotion had cost the company more than $11 million in a single quarter.
TheGrio also covered how Black America helped bring Red Lobster back under current CEO Damola Adamolekun, who has spent nearly two years rebuilding the brand since it exited bankruptcy in September 2024. The Red Lobster Endless Shrimp lawsuit lands while Adamolekun continues to distance the brand from that era.
According to Complex, which cited trade publication Restaurant Dive, the filing alleges Thai Union “doubled down on a campaign to squeeze out every drop of value that it could through uneconomic contracts that benefited Thai Union and made no economic sense for Red Lobster.”
The complaint describes the promotion as a “car crash,” saying restaurants became “immobilized as they ran out of shrimp and were unable to turn over tables” once demand blew past what anyone had planned for.
The Endless Shrimp promotion was initially a seasonal deal for the restaurant chain until 2023, when it was made into a permanent menu item. According to the lawsuit, internal management was against this decision, but ultimately acquiesced. Red Lobster later alleged in bankruptcy proceedings that it was locked into buying shrimp from Thai Union at inflated prices with no alternative supplier available. Thai Union denied these allegations.
Endless Shrimp has since returned in select markets as a limited-time offer.
