Seafood giant Thai Union Group (TU) announced Tuesday it intends to exit its investment in US restaurant chain Red Lobster.

In a statement on Jan. 16, the company said the board had "carefully considered and decided to announce its intention to pursue an exit from the minority investment in Red Lobster Master Holdings (Red Lobster)."

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.