Red Lobster has emerged from Chapter 11 bankruptcy protection.
A U.S. bankruptcy judge approved the casual seafood chain’s reorganization plan Sept. 5 which included a lender group led by asset manager Fortress Investment Group acquiring the business.
The approval comes some four months after Red Lobster filed for bankruptcy protection as it pursued a sale, following years of mounting losses and dwindling customers while it struggled to keep up with competitors.
The Orlando, Fla.-based chain, which lost $76 million in 2023, closed dozens of North American restaurants over recent months — both leading up to and during the bankruptcy process, the Associated Press reported.
Among them were more than 50 locations whose equipment was put up for auction just days before the Chapter 11 petition, followed by additional closures throughout the bankruptcy process.
According to a press release posted to the company’s website, Red Lobster’s new CEO is Damola Adamolekun, former chief executive of P.F. Chang’s. Adamolekun was previously appointed to head RL Investor Holdings, the newly formed entity that acquired Red Lobster.
He previously said that the company’s long-term investment plan included a commitment of more than $60 million in new funding.
“Red Lobster is now a stronger, more resilient company, and today is the start of a new chapter in our history,” Adamolekun said in a statement. Red Lobster is now an independent, privately held company with 545 restaurant locations in 44 states and four Canadian provinces.
