Red Lobster emerges from Chapter 11 bankruptcy protection

Red Lobster, known for its affordable seafood and cheddary crackers, has emerged from Chapter 11 bankruptcy protection.

A US bankruptcy judge approved the casual seafood chain’s reorganization plan earlier this month, which included a group of creditors led by asset manager Fortress Investment Group that acquired the business. The green light comes just four months after Red Lobster filed for bankruptcy protection as it pursued a sale, following 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, has closed dozens of North American restaurants in recent months — both before and during the bankruptcy process. These included more than 50 locations whose equipment was auctioned just days before the Chapter 11 petition, followed by additional closings throughout the bankruptcy process.

Red Lobster’s new CEO is Damola Adamolekun, former chief executive of PF Chang’s. Adamolekun was previously appointed to lead RL Investor Holdings, the new 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, more resilient company, and today is 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.