Business
Red Lobster Seeks Bankruptcy Protection Days After Closing Dozens Of Restaurants
With innovations like popcorn shrimp and “endless” seafood offers, Red Lobster, the casual dining restaurant that popularized seafood, has filed for Chapter 11 bankruptcy protection.
The 56-year-old chain filed late on Sunday following the closure of numerous locations.
“Red Lobster’s best course of action in the future is this restructure. CEO Jonathan Tibus stated, “It enables us to overcome multiple operational and financial obstacles and come out stronger and refocused on our growth.” Expert in corporate reorganization, Tibus assumed the company’s senior position in March.
Red Lobster seeks bankruptcy | Pixa Bay Image
Red Lobster Seeks Bankruptcy Protection Days After Closing Dozens Of Restaurants
Red Lobster announced that its restaurants will stay open during the bankruptcy process, which aims to streamline operations, close locations, and explore a sale. As part of the filing, Red Lobster entered into a “stalking horse” arrangement, which means it intends to sell the company to a company created and managed by its lenders.
According to Aaron Allen, the founder of the restaurant consulting business Aaron Allen & Associates,s bankruptcy was the result of two decades of problems for the company. The company has faced rising competition from quicker-moving, less expensive restaurants like Panera and Chipotle.
Red Lobster occasionally drops its prices to compete, a frequently catastrophic strategy. When crab prices increased in 2003, the company lost millions of dollars on an all-you-can-eat “Endless Crab” campaign, according to Allen. Twenty years later, the chain repeated the same strategy with an “Ultimate Endless Shrimp” campaign.
“It’s an interesting case study in corporate food service that they would have this kind of corporate amnesia,” Allen remarked.
He claimed it saw greater success after Red Lobster rebranded itself as an upscale eatery in the middle of the 2000s. It remodeled stores and increased pricing. However, it continued to face challenges from shifting consumer preferences and growing labor and leasing expenses.
Allen stated, “This slow-moving train wreck has been in motion for the past 20 years.”
Based in Orlando, Florida, Bill Darden started the resturant to lower costs and increase the accessibility of seafood restaurants for families.
Red Lobster seeks bankruptcy | AP Image
Red Lobster Seeks Bankruptcy Protection Days After Closing Dozens Of Restaurants
In 1938, Darden launched The Green Frog in Waycross, Georgia, marking his entry into the restaurant industry. Even though it was against the law then, he dared not separate the restaurant’s guests based on race. Again, he let patrons seat wherever they pleased when he launched the first location in Orlando in 1968.
In 1970, Darden sold it to General Mills, where he remained an executive and continued to operate restaurants. Afterward, General Mills founded Darden Restaurants, which owns Olive Garden and several other brands. In 1995, Darden Restaurants separated from General Mills.
Red Lobster attracted hordes of devotees for meals like lobster linguini and its buttery Cheddar Bay biscuits
Nobody who was born in the world could not enjoy Red Lobster cheddar biscuits. In her memoir “Bossypants,” comedian and actress Tina Fey stated, “Anyone who claims otherwise is a liar and a socialist.”
However, the restaurant needed help to attract younger patrons and stay competitive with other eateries. In 2014, Darden Restaurants sold to a private equity firm. One of the biggest seafood suppliers in the world, Thai Union Group, made its initial investment in Red Lobster in 2016 and increased it again in 2020.
Then, during its “Ultimate Endless Shrimp” promotion last fall, they lost millions of dollars by charging $20 for an all-you-can-eat shrimp feast.
In an earnings call with investors, Thai Union Group’s chief financial officer, Ludovic Garnier, stated, “We knew the price was cheap, but the idea was to bring more traffic in the restaurants.
Garnier reported that restaurant traffic increased as a result of the transaction. However, more customers than Red Lobster had anticipated chose the $20 offer, and “we don’t earn a lot of money at $20,” he said. Thai Union Group reported a $19 million loss from Red Lobster for the first nine months of 2023.
Thai Union Group declared in January that it would sell its minority stake in Red Lobster. According to CEO Thiraphong Chansiri, the COVID-19 epidemic, business challenges, and growing operating expenses have severely impacted the restaurant chain and resulted in “prolonged negative financial contributions to Thai Union and its shareholders.”
Red Lobster seeks bankruptcy | AP – VOR News Image
Red Lobster Seeks Bankruptcy Protection Days After Closing Dozens Of Restaurants
According to a statement made last week by restaurant liquidator TAGeX Brands, the equipment from more than 50 recently closed Red Lobster locations will be up for sale. As a result of the restaurant closures, which are occurring in over 20 states, Red Lobster’s footprint is being diminished in places such as Denver, San Antonio, Indianapolis, and Sacramento, California.
Allen anticipates that due to the bankruptcy proceedings, 700-restaurant network will decrease by one-third to half. All that many prospective purchasers seek is the chain’s real estate.
He predicted the buyer would likely want to keep Red Lobster the same.
In the court statement, Red Lobster stated that its assets are believed to be between $1 billion and $10 billion, with over 100,000 creditors. The corporation’s liabilities are between $1 billion and $10 billion.
SOURCE – (AP)
Microsoft’s online gaming and digital media network, Xbox Live, experienced a massive outage Tuesday, and thousands of customers reported issues accessing it.
According to monitoring site Downdetector, user-reported Xbox Live difficulties began to surge at 2:15 p.m. ET Tuesday. At 2:25 p.m., the site had received over 23,000 outage reports, with more than three-fourths indicating login troubles. Some Xbox Live customers reported getting an error message indicating that the service was undergoing “scheduled maintenance.”
Xbox | XBox Image
Xbox Live Goes Down In Nearly Seven-Hour Outage
Other Microsoft-operated services, such as Minecraft and the Microsoft Store, also received many user issue reports on Downdetector.
The official Xbox Support account on X stated at 2:55 p.m. ET, “We are aware that some users have been disconnected from Xbox Live. We are conducting an investigation!” The notice led visitors to the Xbox status page, which was later modified to indicate that a serious outage of the “Account & Profile” service was reported at 2:07 p.m. ET.
Xbox
Xbox Live Goes Down In Nearly Seven-Hour Outage
“You may be unable to sign in to your Xbox profile, disconnected while signed in, or experiencing other related issues,” the statement on the Xbox status website read. “Features that require sign-in like most games, apps and social activity won’t be available.”
To play online games and access additional experiences on the Xbox console, Windows PC, and Xbox mobile apps, users must first create an Xbox Live account (which is free).
SOURCE – Variety
(CTN News) – General Access Solutions, the company that owns the patent, has been ordered to collect $847 million from Verizon, a major telecommunications carrier in the United States.
According to the information that was provided by The Register, a federal jury in East Texas ordered Verizon to pay General Access the money that was owing to it.
This was stated in the material. The reason for this was that General Access had broken two patents, which led to this situation. As a consequence of this change.
For General Access, Verizon is now responsible for making payments.
According to the decision that was handed down by the court a week ago, the total amount is comprised of a “reasonable royalty” of $583 million for infringing on US Patent No. 7,230,931 (the ‘931) patent, as well as an additional $264 million for infringing on the other patent, which is 9,426,794 (‘794).
The total amount in question is $583 million. The sum in dispute comprises a total of 583 million dollars. Five hundred and eighty-three million dollars is the entire amount that is under question.
According to the allegations, Verizon has committed a violation of the patents that General Access possesses which pertain to the technologies of 5G and hotspots. These patents are related to the technologies that are accessible to the general public without restriction.
General Access was the purchaser of the patents, which had been developed by Raze Technologies, the firm that had bought them. On the other hand, General Access said that some components of Verizon’s 5G wireless networks, smartphone hotspots, wireless home routers, and MiFi devices are in breach of the company’s intellectual property rights.
Raze Technologies was the company that successfully completed the acquisition of the patents offered by General Access.
2001 was the year that both patent applications were initially submitted to the appropriate authorities. The year in which everything began was the year in question.
In the initial complaint that the firm has submitted, it says that the base station technology that Verizon has been deploying is in violation of the 931 patent that it possesses.
This is stated in the complaint that the company has filed. As an additional point of disagreement, the business asserts that the wireless devices produced by Verizon that are capable of receiving 4G and 5G cell signals are in violation of its ‘794 patent. This is due to the fact that these devices route information to mobile stations by abusing 802.11 WiFi communications protocols. This is an additional contentious factor to consider.
In answer to a question that was posed about the patents, Verizon provided a statement in which it suggested that the patents were invalid due to the fact that there was either no written description or the patents were not “fully enabled.”
Verizon’s response to the inquiry is as follows:
According to the official response, this was the response. On the other hand, the members of the jury did not accept this line of thinking in any manner, shape, or form and refused to accept it in any way.
Verizon disclosed that the company will be appealing the verdict in a statement that was issued to DCD. The statement was sent to provide information about the case.
Despite the fact that we have a great deal of respect for the court system, we are unable to express our agreement with the verdict that was reached by this particular jury. As part of our efforts to reverse the verdict that was handed down today, we are going to file an appeal, and we are also going to continue searching for administrative remedies.
In line with a statement that was released by a spokesperson for Verizon, this does not imply the fact that the situation has been resolved.
According to Law 360, Ericsson, a Swedish component manufacturer, is also vehemently opposed to the verdict. The business has declared that it will support any challenge that Verizon takes forward, and it has stated that it will defend itself against any other challenge. The company Ericsson is widely recognized as a frontrunner in the business when it comes to the creation of components.
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To navigate the climate proposal, BlackRock employs a new voting policy.
Alibaba will discontinue its data center operations in India and Australia.
Google Falling Short Of Important Climate Target, Cites Electricity Needs Of AI
(VOR News) – The $10.5 trillion money BlackRock manager’s assets will vote differently on shareholder proposals than the funds that have specific climate change mandates. This is BlackRock’s most recent attempt to navigate the political rift over decarbonization.
The world’s biggest asset management said in a statement on Tuesday that clients of funds with a climate focus will now be allowed to voice their opinions aggressively in shareholder resolutions pertaining to decarbonization.
All of BlackRock’s funds are susceptible to climate risk.
Still, funds that follow its recently released “climate and decarbonization stewardship guidelines” will evaluate whether or not companies are really attempting to keep the rise in world average temperature to 1.5 degrees Celsius over pre-industrial levels.
The Paris Agreement, which over 200 nations joined, set this goal as the optimal threshold.
The head of BlackRock, Larry Fink, was a vocal early proponent of integrating sustainability into the investment process. In his letter to investors for the 2020 annual meeting, he raised the topic of climate change, but he has subsequently faced criticism from all sides.
With the new stewardship policy, BlackRock is attempting to reconcile US regulations compelling fund managers to focus on financial returns with the expectations of its clients in Europe and the US, who want the company to promote decarbonization.
In a letter to clients, Joud Abdel Majeid, Global Head of Stewardship at BlackRock, said that the policy will start to apply to 83 funds in the fourth quarter. $150 billion worth of assets are held by these funds, all of which are headquartered in Europe.
Conservatives in the US are starting to push back, denouncing the movement as “woke capitalism.” This is true even if a large number of progressives and investors in Europe favor advancing the effort to limit global warming as quickly as is practical.
The boards of directors of funds with a special responsibility for climate change in the United States and Asia will be asked if they would like to carry out the policy later this year. The climate-related option that BlackRock intends to offer will also be available to clients who invest through independently managed accounts.
“BlackRock will continue to undertake our stewardship responsibilities with a sole focus on advancing clients’ long-term financial returns in line with our benchmark policies,” Abdel Majeid stated.
“BlackRock will continue to handle all other funds.”
As a result, the climate-focused funds might adopt stances on business votes related to fossil fuels and other decarbonization-related issues that are completely at odds with those of the other funds in the group. They will follow BlackRock’s primary criteria for additional environmental, social, and governance considerations in all other cases.
Since the spike in energy prices that coincided with Russia’s full-scale invasion of Ukraine two years ago, BlackRock has been the subject of intense political discourse. Conservatives have tried to limit or boycott the company’s offerings. Simultaneously, proponents of climate change expressed their annoyance at the company’s sharp drop in backing for shareholder resolutions related to the issue.
Since then, the asset manager has claimed that a large number of recently passed shareholder resolutions by businesses were unduly prescriptive and did not support customers’ financial interests.
BlackRock withdrew its support from Climate Action 100+, an investor group founded to motivate companies to combat global warming, at the beginning of this year. Instead of carrying on with global participation, it chose to move membership to its smaller foreign subsidiary.
BlackRock has also implemented a policy that gives institutional clients and some retail investors authority over how their shares are voted on proxy matters.
Investors may choose to entrust BlackRock with their vote or they can choose from over a dozen policies created by proxy advisers Institutional Shareholder Services and Glass Lewis through the “voting choice” scheme.
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Google Falling Short Of Important Climate Target, Cites Electricity Needs Of AI
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