The $20 “Endless Shrimp” deal that ultimately led Red Lobster into bankruptcy was more than just a failed promotion – it was a calculated move by its owners to extract maximum value from the company, according to a recent lawsuit.

Leading up to its bankruptcy filing in 2024, Thai Union, a major seafood producer and then-owner of Red Lobster, was accused of exploiting the iconic restaurant chain for its own gain, as detailed in a lawsuit filed in the Ninth Judicial Circuit Court in Florida.

The lawsuit alleges that Thai Union treated Red Lobster as a mere vehicle for its own products, especially as the chain faced financial difficulties.

The lawsuit was filed by a trust representing Red Lobster creditors who were owed approximately $295 million at the time of the bankruptcy filing. They are seeking monetary damages through a jury trial.

According to the complaint, Thai Union turned Red Lobster’s popular all-you-can-eat deal into a permanent offering, despite its financial impracticality, resulting in significant losses for the chain.

Thai Union’s control over Red Lobster’s operations extended to influencing supplier contracts, pushing the chain to purchase products exclusively from Thai Union at inflated prices.

The lawsuit sheds light on the power struggle between Thai Union and Red Lobster’s management, ultimately leading to the chain’s bankruptcy and subsequent change in ownership.

Today, under new leadership, Red Lobster is undergoing a revitalization effort to regain its footing in the competitive seafood market.

In a strategic move, Red Lobster recently reintroduced the “Endless Shrimp” deal as a limited-time promotion, signaling a fresh start for the iconic American seafood chain.