Former executives and senior leaders from Red Lobster have painted a picture of misery in their workplace environment after Thai Union, a major Thai seafood company, began running things. The Orlando-based chain filed for Chapter 11 bankruptcy protection on May 19 following the unexpected closure of nearly 100 locations last week.
The filing comes four years after Thai Union became Red Lobster’s largest shareholder and started taking a hands-on approach to daily operations. Former employees claim that Thai Union’s incompetence led to the company’s downfall, with some calling it “miserable” working there for the last year and half of their tenure.
Thai Union has attributed its financial struggles to the COVID-19 pandemic, higher interest rates, and labor costs. However, insiders say that after Thai Union became the largest shareholder, it began installing its own executives, resulting in many longtime employees being fired or resigned rapidly. The company has had five CEOs in the last five years amid this shakeup.
During a visit to Red Lobster’s Orlando headquarters in 2022, Thai Union CEO Thiraphong Chansiri brought along a feng shui consultant who determined that the executive offices had “bad feng shui” and couldn’t be used. The environment at the company became increasingly toxic during this time, especially when Australian interim CEO Paul Kenny took over in 2022 as part of the Thai Union-led investor group that bought a majority stake in Red Lobster.
Kenny openly criticized and belittled employees during meetings, making decisions such as implementing the doomed $20 unlimited shrimp promotion against significant internal opposition. He also cut ties with two of Red Lobster’s longtime shrimp suppliers to buy more shrimp from Thai Union at higher costs.
The result was a decline in customer satisfaction and revenue, prompting investigations into both Kenny’s decision-making process and Thai Union’s role in the company’s downfall. Red Lobster currently owes its 36,000 employees $16.7 million in unpaid wages. The remaining restaurants will continue to operate as usual during bankruptcy proceedings while additional closures are planned.
