Red Lobster has exited bankruptcy

Red Lobster, famed for its affordable seafood and cheddar biscuits, has emerged from Chapter 11 bankruptcy protection.

Earlier this month, a U.S. bankruptcy judge approved the seafood chain's reorganization plan, which involved a lender group led by asset manager Fortress Investment Group acquiring the business. This approval came less than four months after Red Lobster filed for bankruptcy protection in pursuit of a sale, following years of escalating losses and declining customer numbers as it struggled to compete.

The Orlando, Florida-based chain, which reported a $76 million loss in 2023, closed numerous North American locations in the months leading up to and during the bankruptcy process. This included over 50 restaurants whose equipment was auctioned just days before the Chapter 11 filing, with more closures occurring throughout the bankruptcy proceedings.

Red Lobster's new CEO is Damola Adamolekun, the former chief executive of P.F. Chang’s. Adamolekun was appointed to lead RL Investor Holdings, the new entity that acquired Red Lobster. He has previously stated that the company's long-term investment plan includes more than $60 million in new funding.

“Red Lobster is now a stronger, more resilient company, and today marks the beginning of a new chapter in our history,” Adamolekun said in a statement on Monday.

Red Lobster is now an independent, privately-held entity with 545 restaurants across 44 states and four Canadian provinces.