Red Lobster, known for its affordable fish and cheddar biscuits, has exited Chapter 11 bankruptcy protection.
A U.S. bankruptcy judge earlier this month approved the casual seafood chain’s reorganization plan, which includes a lending group led by asset manager Fortress Investment Group taking over the company. The green light comes less than four months after Red Lobster filed for bankruptcy protection as it pursued a sale after years of mounting losses and declining customers as it struggled to keep up with competitors.
The Orlando, Florida-based chain, which lost $76 million in 2023, closed dozens of its North American restaurants in recent months — both leading up to and during the bankruptcy process. That included more than 50 locations whose equipment was auctioned off just days before the Chapter 11 filing, followed by additional closures during the bankruptcy process.
Red Lobster’s new CEO is Damola Adamolekun, formerly CEO of PF Chang’s. Adamolekun was previously named head of RL Investor Holdings, the newly formed entity that acquired Red Lobster. He previously said the company’s long-term investment plan included a commitment of more than $60 million in new financing.
“Red Lobster is now a stronger and more resilient company and today marks the beginning of a new chapter in our history,” Adamolekun said in a statement Monday.
Red Lobster is now an independent, privately held company with 545 restaurants in 44 states and four Canadian provinces.
