Red Lobster owes Red Chamber USD 7.6 million in unpaid shrimp supply bills

A pile of breaded shrimp
Red Chamber claims Red Lobster owes it millions of dollars for supplying it with breaded shrimp, including Red Lobster's Walt's Favorite-style shrimp | Photo courtesy of Red Lobster
4 Min

Red Lobster owes seafood wholesaler Red Chamber Co. more than USD 7.6 million (EUR 7.1 million), a court filing in its Chapter 11 bankruptcy case revealed.

Vernon, California, U.S.A.-based seafood wholesaler Red Chamber submitted a USD 7.6 million (EUR 7.1 million) claim in the case, which is being overseen by the U.S. Bankruptcy Court in Orlando, Florida, U.S.A.

In the 11 June claim, Red Chamber detailed evidence it supplied 31/35 peeled, deveined, tail-on shrimp at USD 3.80 (EUR 3.54) per pound for a total of USD 2.53 million (EUR 2.36 million) and 21/23 “Walt’s favorite” shrimp at USD 4.15 (EUR 3.86) a pound for around USD 2.1 million (EUR 1.9 million) as a member of Red Lobster’s shrimp vendor inventory program. The company also supplied 14/16 coconut shrimp at USD 4.70 (EUR 4.37) per pound; 36/40 peeled, deveined IQF shrimp at USD 3.70 (EUR 3.44) a pound; and peeled, deveined, tail-on IQF shrimp at USD 4.50 (EUR 4.19) per pound.

The contracts were confirmed in letters from Red Lobster Strategic Sourcing Manager Cliff Culhane to Red Chamber Vice President Andro Chen, according to the documentation provided by Red Chamber.

In a separate October 2022 email to Chen and other Red Chamber executives marked by a "Red Lobster Shrimp Quality Initiative *Urgent*" subject line, Culhane said the restaurant chain was struggling with quality issues in its breaded shrimp program. 

“Due to recent events surrounding quality concerns with our breaded shrimp SKUs within the restaurant, we are taking steps and formulating an action plan to work hand in hand with our suppliers to resolve these issues and chart a better path moving forward for our guests, our brand, and each other,” Culhane wrote.

Clackamas, Oregon, U.S.A.-based Pacific Seafood was the first seafood company to file a claim against Red Lobster during its bankruptcy, claiming it is owed USD 1,938.25 (EUR 8,674). 

Seattle, Washington, U.S.A.-based Ocean Beauty Seafoods is the only ...

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