Red Lobster earlier this month quietly replaced short-term CEO Horace Dawson with an executive known for his work leading failing restaurant chains through bankruptcies.
Jonathan Tibus has replaced Dawson, who only served as the CEO for six months as he worked to address ongoing challenges facing the restaurant.
Tibus, who has served as a managing director for the US consulting firm Alvarez & Marsal for 21 years, has led US restaurants that include Kona Grill and fast-food chain Krystal through Chapter 11 bankruptcy procedures.
Earlier this year, seafood giant Thai Union Group said it would exit its investment in Red Lobster, the largest restaurant chain in the United States.
The company has been a strategic partner and minority investor in Red Lobster since 2016.
During the past years, the combination of the COVID-19 pandemic, sustained industry headwinds, higher interest rates and rising material and labor costs have impacted Red Lobster's business, resulting in prolonged negative financial contributions to Thai Union and its shareholders, the company said.
Last year, the company initiated a review to identify areas for operational and financial improvement of America's largest seafood restaurant chain.
After detailed analysis, the board determined that Red Lobster’s ongoing financial requirements no longer align with Thai Union's capital allocation priorities.
