Red Lobster has successfully exited Chapter 11 bankruptcy protection after a US bankruptcy judge approved its reorganization plan earlier this month.
The approval comes less than four months after the popular seafood chain filed for bankruptcy amid declining sales and increasing competition.
The reorganization plan included the acquisition of Red Lobster by RL Investor Holdings LLC, a new entity led by Fortress Investment Group. The chain, based in Orlando, Florida, will now operate as an independent, privately held company. As part of its restructuring, Red Lobster has closed dozens of North American locations and auctioned off equipment from over 50 restaurants.
The company’s new CEO, Damola Adamolekun, formerly the chief executive of P.F. Chang’s, has been appointed to lead the company under its new ownership. Adamolekun, who previously headed RL Investor Holdings, expressed optimism about Red Lobster’s future, citing a commitment of over $60 million in new funding as part of the company’s long-term investment plan.
In a statement, Adamolekun highlighted the company’s enhanced resilience and readiness to move forward.
“Red Lobster is now a stronger, more resilient company,” he said.
He also emphasized plans to improve the brand’s operations and customer experience.
Red Lobster’s bankruptcy filing, initiated in May, was driven by significant financial challenges, including a $76 million loss in 2023 and costly promotional strategies. The company’s restructuring efforts are aimed at addressing these issues and repositioning the brand for future success.
The chain, which now operates 545 restaurants across 44 US states and four Canadian provinces, will be under the leadership of Adamolekun as it embarks on this new chapter. Sara Trilling, the current North America President, will continue in her role and report directly to Adamolekun.
Adamolekun, who holds degrees from Brown University and Harvard Business School, has been actively visiting Red Lobster locations to engage with customers and gather feedback on potential improvements.
The Root, the Blade, PR Newswire contributed to this report.
