The chief executive of seafood restaurant chain Red Lobster is stepping down from her post just eight months after taking office — a surprise departure that one analyst reportedly described as a “very bad” sign for the company.
Neither Red Lobster nor Kelli Valade, a veteran executive in the restaurant industry, offered an explanation for her sudden departure as CEO.
The outgoing boss called the move, which takes effect on April 15, an “incredibly difficult but necessary decision.”
“We have accomplished a lot in a short amount of time, including building a great leadership team who, together with the board, will move the company forward to achieve our vision,” Valade said in a statement. “I really loved my time here at Red Lobster.”
Valade took over as CEO of Red Lobster last August and has been tasked with the brand’s recovery from the COVID-19 pandemic — faced with major challenges including a nationwide labor shortage and rising seafood costs.
She joined the company after a stint as head of restaurant analytics firm Black Box Intelligence and two decades at Brinker International, parent company of restaurant chain Chilli’s.
Kelli Valade took over as CEO of Red Lobster last August and has been tasked with the brand’s recovery from the COVID-19 pandemic. Light Rocket via Getty Images
Red Lobster said its leadership team will work with the board to ensure “business continuity while we search for a permanent replacement” for Valade. The Company has selected Board Member Paul Kenny to be the transition contact.
Restaurant analyst John Gordon told the Orlando Sentinel that Valade’s decision to head for the exits was a “very, very, very bad” sign for the company.
“No CEO wants to be on board a company for just eight months. That says it all,” Gordon told the outlet. “That’s an indicator of severe stress and dysfunction that you can only stay in the job for eight months before some kind of irreparable break occurs.”
Red Lobster officials did not immediately respond to a request for further comment on Valade’s departure and subsequent criticism.
Red Lobster experienced a downturn in business during the COVID-19 pandemic. Bloomberg via Getty Images
Valade’s exit follows a series of recent management changes at Red Lobster, which announced the hiring of a new chief financial officer and a new chief marketing officer in January.
Thailand-based fish producer Thai Union led a group of investors that acquired Red Lobster from Golden Gate Capital in 2020. Thai Union’s US brands include Chicken of the Sea.
The chain had some financial difficulties before the sale, with former CEO Kim Lopdrup calling the pandemic the “most challenging time” in the company’s history.
Red Lobster’s recovery was dampened earlier this year during the rise of the Omicron variant.