Activist investor Starboard Value has acquired a 5.6% stake in Darden Restaurants for $374 million. Starboard will become the second activist investor within months to push for a strategy change in the struggling restaurant operator.
Tags: Red Lobster
US Seafood Restaurants Warned by FTC for Falsely Marketing Imported Seafood as Local
The FTC has warned major US seafood restaurants about misleading claims that imported seafood is locally caught, following complaints from the local fishing industry.
Red Lobster Goes Bankrupt After $20 Unlimited Shrimp Offer Backfires
Red Lobster has filed for Chapter 11 bankruptcy protection, citing high operational costs and an unprofitable unlimited shrimp promotion. It plans to transfer control to its lenders with $100 million in financing from Fortress Investment Group.
Red Lobster Abruptly Closes at Least 48 Restaurants in US Amid Bankruptcy Reports
Red Lobster is unexpectedly shutting 48 US locations, liquidating its assets via an online auction. A sign is posted in front of a Red Lobster restaurant on May 16, 2014 in San Bruno, California.
Former Seafood Giant Red Lobster Nears Bankruptcy Due To Declining Sales and Mismanagement
Red Lobster, which used to be a seafood giant, is on the brink of bankruptcy due to managerial missteps that started in 2003 with no recovery decades later.
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Restaurant operator Darden Restaurants on Thursday announced that it intends to spin off or sell its Red Lobster chain, succumbing to pressure by activist investor Barington Capital Group. Barington owns over 2% stake in Darden.
Activist investor Barington Capital Group said that Darden Restaurants Inc., the operator of Olive Garden and Red Lobster restaurant chains, could be worth $71 to $81 per share. Barington recommends that Darden split into two companies.
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