Red Lobster, known for its affordable seafood and cheddary biscuits, has exited Chapter 11 bankruptcy protection.
A U.S. bankruptcy judge approved the casual seafood chain's reorganization plan earlier this month, which included a lender group led by asset manager Fortress Investment Group acquiring the business. The green light arrives under just 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, Florida-based chain, which lost $76 million in 2023, shuttered dozens of its North American restaurants over recent months -- both leading up to and during the bankruptcy process. That included 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.
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 on Monday.
Red Lobster is now an independent, privately-held company with 545 restaurant locations in 44 states and four Canadian provinces.
