The Thug is first seen at the beginning of the film, where Penny and Bolt follow him down the street. However, the Thug notices them, and tries to ram them in his getaway car, but soon Bolt is able to knock the car off the road straight to the ground upside down. He then refuses to talk when Penny asked him where Dr. Calico is holding her father hostage, and decided to have Bolt hold the Thug directly over the bridge momentarily, before finally telling them that Calico is in Bolivia, near Lake Rogaguado just as more of Dr. Calico's minions arrived Bolt placed the car with the Thug still inside. The entire event later turns out to be all an act for a fictional television series.
During the fire (accidentally caused by Bolt's lookalike), the Thug was among several others rushing towards Penny whose still "tied up" on the rope but she managed to escape just as they arrived to find her gone. He along with most of the film crew barely make it out where he is carried along another person.
While Penny is being taken to an ambulance after she had been rescued by Bolt, they pass by the Thug who is being aided by a firefighter. He is not seen again afterwards.
The Thug is seen at the end of the short, where he gives praise to Rhino when he sings "The Best of Both Worlds" after saving Penny and Bolt from Calico. It turns out the entire event was just a dream by Rhino.
Trivia
In the teaser trailer, the Thug is reading a newspaper when Bolt tries to knock him out by tapping his shoulder. In the film, this part is used with a different man (who Bolt believes is Calico).
Gallery
Thug being dispatched by one of Calico's associates.
"What?!"
Thug and film crew rushing to Penny's aid.
Thug and the others realizing Penny is gone.
Thug barely escaping the studio with others during the fire.