Red Lobster’s $20 shrimp binge triggers bankruptcy and a multi-million lawsuit
Red Lobster’s 2023 $20 “Ultimate Endless Shrimp” promotion caused massive losses, leading the chain into bankruptcy and sparking a lawsuit over alleged shrimp-price manipulation.
In the summer of 2023 Red Lobster rolled out a $20 “Ultimate Endless Shrimp” offer, promising unlimited shrimp varieties with a side and Cheddar Bay Biscuits. The promotion turned into a mukbang spectacle, with influencers like Joey Kinsley eating shrimp for ten-hour marathons, which clogged dining rooms and drove regular patrons away. The chain lost $11 million in Q3 and $12.5 million in Q4 of 2023, and filed for bankruptcy protection in May 2024, citing $692 million in liabilities and closing about 130 of its 700 locations.
A creditors’ trust has filed a lawsuit in Florida accusing former owners Thai Union and Seafood Alliance, along with ex-executives Paul Kenny, Scott Solar and Trin Tapanya, of orchestrating a shrimp-price scheme that added $32 million in unnecessary costs and $23 million in overpayments. While the shrimp promotion highlighted deeper issues such as costly sale-leaseback deals from the Golden Gate Capital era, the litigation seeks recovery for unpaid wages, deferred compensation and other creditor claims, with trial slated for early 2028.
Why it matters
The case shows how a promotional misstep can accelerate a major chain’s collapse and trigger costly legal battles over corporate governance.
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