Red Lobster, the popular seafood restaurant chain, has officially exited Chapter 11 bankruptcy protection after receiving approval for its reorganization plan from a U.S. bankruptcy judge. The reorganization saw a lender group led by Fortress Investment Group acquiring the business, allowing the Orlando-based chain to emerge from bankruptcy in just four months.
Financial Restructuring and Business Acquisition
Red Lobster, known for its affordable seafood and cheddar biscuits, had been grappling with mounting losses and a shrinking customer base. The company reported a loss of $76 million in 2023 and had closed dozens of North American locations, including more than 50 restaurants that were shuttered just before and during the bankruptcy process.
As part of its restructuring, Fortress Investment Group acquired the chain through RL Investor Holdings, a newly formed entity. The plan includes a long-term commitment of more than $60 million in new funding to support the company’s revival.
New Leadership and Future Plans
Former P.F. Chang’s CEO Damola Adamolekun has been appointed as the new CEO of Red Lobster. Adamolekun, who was already involved in overseeing RL Investor Holdings, expressed optimism about the company’s future, stating, “Red Lobster is now a stronger, more resilient company, and today is the start of a new chapter in our history.”
Current Operations
Red Lobster now operates as an independent, privately held company with 545 restaurant locations across 44 U.S. states and four Canadian provinces. With new ownership and leadership, the company aims to reinvigorate its brand and compete more effectively in the casual dining space.
The restructuring and exit from bankruptcy mark a new chapter for Red Lobster as it works to regain financial stability and restore its market position.
