Red Lobster Chain Taps AlixPartners for Help With Operations

Seafood restaurant chain Red Lobster Management LLC brought in AlixPartners for operational advice as it seeks to address mounting losses, according to people with knowledge of the situation.

(Bloomberg) — Seafood restaurant chain Red Lobster Management LLC brought in AlixPartners for operational advice as it seeks to address mounting losses, according to people with knowledge of the situation.

The chain, which is owned by seafood producer Thai Union Group Plc, is also getting advice from Guggenheim Partners, which it has worked with previously, said the people, who asked not to be identified because the matter is private.

A representative for Thai Union declined to comment, while messages left with Red Lobster were not returned. Representatives for AlixPartners and Guggenheim declined to comment.

Thai Union’s Chief Executive Officer Thiraphong Chansiri told Bloomberg News in March that it was considering exiting the Orlando, Florida-based chain as its losses mounted. The seafood producer boosted its stake in Red Lobster in 2020 after acquiring a quarter of the company in 2016.

Losses at Red Lobster were around 170.2 million Thai baht ($4.8 million) for the six-month period that ended June 30, according to financial statements.

The 55-year-old chain, known for its cheddar bay biscuits and dishes like crab legs, has gone through multiple owners in recent years. Once owned by Darden Restaurants Inc., Red Lobster was sold to private equity firm Golden Gate Capital in 2014.

–With assistance from Janine Phakdeetham.

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