Red Lobster Officially Emerges From Chapter 11 Bankruptcy With New CEO

Red Lobster fans, rejoice and get ready for more endless shrimp. The formerly beleaguered casual seafood chain has announced that it has officially emerged from Chapter 11 bankruptcy.

In a press release announcement, it was revealed that Damola Adamolekun, the new 35-year-old CEO, has officially taken the reins of the restaurant and has promised to revitalize the faltering brand.

“Red Lobster is now a stronger, more resilient company, and today is the start of a new chapter in our history,” he said in a statement accompanying the press release. “From the opening of our first restaurant in 1968, Red Lobster has focused on serving diners high-quality seafood at affordable prices. I’ve been a Red Lobster fan since my first dining experience as a 9-year-old at our Springfield, Ill, restaurant — and as I’ve prepared to step into the role of CEO, I’ve met hundreds of diners across the country who, just like me, are as passionate about Red Lobster now as they were on their first visit.”

Adamolekun also gave a hint as to the potential new direction of the company, promising increased funding and revitalized menus and restaurants. “As part of our new ownership structure, we have backers who have a history of making successful investments in restaurants,” he said. “Our comprehensive and long-term investment plan for Red Lobster includes a commitment of more than $60 million in new funding which will help us to deliver improvements across every aspect of our company. I’m looking forward to working with our 30,000-strong team to bring our plan to life.”

The Red Lobster restaurant chain has officially been fully acquired by RL Investor Holdings LLC and has emerged from its Chapter 11 bankruptcy restructuring as a consequence of the acquisition. RL Investor Holdings LLC was established by funds managed by affiliates of Fortress Investment Group LLC (“Fortress”), in partnership with co-investors Blue Torch and TCW Private Credit.

With this restructuring, Red Lobster is now a standalone, privately held business that operates 545 restaurants in 44 U.S. states and four Canadian provinces.

Red Lobster Filed for Chapter 11 in April

Red Lobster filed for Chapter 11 bankruptcy back in April as a result of growing debt and other financial difficulties. The restaurant business raised the price of its unending shrimp bargain, yet it still recorded an operational loss of $12.5 million in the fourth quarter of 2023.

The casual seafood dining chain has made an effort to draw customers with exclusive deals in spite of its difficulties. For example, the restaurant company introduced the infinite Lobster Experience earlier this year, giving 150 winners a free two-hour dinner that included an infinite supply of lobster, two side dishes, and cheddar biscuits.