Damola Adamolekun, former CEO of P.F. Chang's, will take the helm at Red Lobster after a court approval of the restaurant chain's bankruptcy plan, investment management firm Fortress said on Monday.
Lenders, including Fortress Investment Group, are seeking approval for RL Investor Holdings, a newly formed entity, to acquire Red Lobster out of bankruptcy.
Restaurant Closures
Adamolekun, who stepped down from his role as the boss of restaurant chain P.F. Chang's in 2023, will become the CEO of RL Investor, Fortress said.
Red Lobster filed for bankruptcy in Florida in May with about $300 million (€268 million) in debt and a plan to close some restaurants and sell itself to its lenders or a higher bidder.
Red Lobster would continue to operate as an independent company, with 544 locations across 44 states in the US and four Canadian provinces, Fortress said.
Bankruptcy
The company closed 93 locations earlier in the year, and it did not immediately respond on Tuesday to a question about how many locations would remain open after its bankruptcy.
Red Lobster entered bankruptcy with about 550 casual dining restaurants in the US and 54 restaurants in other countries. It posted a $76 million (€70.1 million) net loss in 2023 and blamed its bankruptcy on high inflation, unsustainable rent costs, and poor management decisions including an 'endless shrimp' promotion that caused $11 million (€10.1 million) in losses.
Fortress
Fortress has acquired other brands out of bankruptcy in recent years, including Vice Media and movie theater chain Alamo Drafthouse.
Alamo Drafthouse was later sold to Sony Pictures Entertainment, while Vice cut hundreds of jobs and temporarily shuttered Vice.com before relaunching the news website in partnership with Savage Ventures.
Article by Reuters, additional reporting by Hospitality Ireland.
