After its extra-large shrimp supply was cut off, Benihana is suing its seafood provider for breach of contract of a deal worth millions of dollars.
On Oct. 7, 2015, Benihana entered a contract with Bama Sea Products. The terms of the agreement –$5.2 million – was to last Jan. 1, 2016, through Dec. 31, 2016.
Bama was to provide Benihana with extra-large shell-on Vannamei white shrimp (26/30) fished from waters off Ecuador and/or Peru. However, in early 2016 Benihana was told that there was a shortage in Bama’s extra-large shrimp supply.
On Feb. 29, 2016, Bama and Benihana entered a contract for temporary modification. This deal would require Bama to supply large shrimp (31/35) and not extra-large shrimp until the supply was back to normal. The terms of this agreement were from April 1 to July 31.
By Aug. 1, 2016, the original agreement was in effect, although the two companies agreed to adjust the modification on a case-by-case basis. After the two companies could no longer agree on temporary accommodations, the original agreement was back in full swing.
The agreement was set to continue until the end of the year.
Bama failed to provide Benihana with the extra-large shrimp at the price originally agreed upon.
Because Bama could not fulfill the contract Benihana was required to retain legal counsel to reach a resolution. Benihana issuing Bama on one count of breach of contract. The suit was filed Nov. 4, 2016.
Bama was to ship the shrimp to freezers in Massachusetts and California for another company to pick up and distribute. At $3.95 per pound, Benihana was to receive 1,320,000 pounds this year. The company projected its shrimp usage was about 110,000 pounds per month.
Bama Sea Products headquarters are 756 28th St. S in St. Petersburg.
