Red Lobster officially came out of the bankruptcy process on Monday, with the new CEO Damola Adamolekun calling it the "start of a new chapter" for the seafood restaurant chain.
The seafood chain’s exit from bankruptcy came after RL Investor Holdings LLC acquired it as part of a court-approved Chapter 11 plan.
RL Investor Holdings, formed by affiliates of Fortress Investment Group, TCW Private Credit and Blue Torch, said Monday it will run Red Lobster and its 545 restaurants as an independent company. Adamolekun began his stint as the seafood chain’s new CEO the same day.
"I’ve been a fan since my first Red Lobster meal as a 9-year-old growing up in Springfield, IL, so this is an especially proud moment," Adamolekun wrote Monday on LinkedIn. "With 30,000 passionate team members, millions of fans across the US and Canada, deeply committed and experienced backers, and more than 55 years of iconic history, I know we have what we need to restore Red Lobster’s status as an admired American restaurant."
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In a press release, Adamolekun said the company has a "comprehensive and long-term investment plan" for the seafood restaurant chain.
Part of that plan "includes a commitment of more than $60 million in new funding which will help us to deliver improvements across every aspect of our company," according to the CEO.
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On Sept. 5, the U.S. Bankruptcy Court for the Middle District of Florida signed off on RL Investor Holding’s Chapter 11 plan, paving the way for Red Lobster to come out of the bankruptcy process it started in May.
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Red Lobster sought Chapter 11 bankruptcy protection with the intention to "drive operational improvements, simplify the business through a reduction in locations, and pursue a sale of substantially all of its assets as a going concern," it said at the time.
The seafood restaurant chain dates back to 1968, when Bill Darden launched the first restaurant.
Daniella Genovese contributed to this report.
https://www.foxbusiness.com/lifestyle/red-lobster-back-ceo-plots-future-seafood-chain
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