Quick Hit:

Red Lobster exits Chapter 11 bankruptcy with a reorganization plan led by Fortress Investment Group, marking a fresh start under new leadership.

Key Details:

• Red Lobster exited Chapter 11 bankruptcy after a U.S. judge approved its reorganization plan.

• Asset manager Fortress Investment Group acquired the business, leading to over $60 million in new funding.

• The seafood chain closed more than 50 locations leading up to and during the bankruptcy process.

Diving Deeper:

Red Lobster, a staple in casual dining known for its affordable seafood and signature cheddar biscuits, has officially exited Chapter 11 bankruptcy protection. A U.S. bankruptcy judge approved the company's reorganization plan earlier this month, with a group of lenders led by Fortress Investment Group taking ownership of the chain.

The Orlando, Florida-based company had faced years of financial struggles, with declining customer numbers and increased competition. Red Lobster's filing for bankruptcy protection came as the company pursued a sale, posting losses of $76 million in 2023. In response, the chain closed over 50 locations, with more closures following during the bankruptcy process.

Damola Adamolekun, former CEO of P.F. Chang's, is now leading the company as CEO of RL Investor Holdings, the newly formed entity that acquired Red Lobster. Adamolekun emphasized the company’s renewed strength and resilience, announcing a $60 million commitment in new funding to revitalize the brand.

With 545 restaurants in 44 U.S. states and four Canadian provinces, Red Lobster aims to leverage this fresh investment and leadership to stay competitive in the casual dining sector.