Red Lobster Management LLC, along with its Red Lobster restaurant chain subsidiary, has received court approval for its Chapter 11 bankruptcy reorganization plan. RL Investor Holdings LLC, backed by Fortress Investment Group, alongside co-investors TCW Private Credit and Blue Torch, is expected to acquire the restaurant operation before the end of September, at which time Damola Adamolekun will become the chief executive officer of the chain. Jonathan Tibus, who has served as the the ceo of Red Lobster during the reorganization, will step down from the role and leave the company.
“With our new backers, we have a comprehensive and longterm investment plan – including a commitment of more than $60 million in new funding – that will help to reinvigorate the iconic brand while keeping the best of its history,” said Adamolekun in a statement issued on September 5. I cannot wait to get started on our plan with the company’s more than 30,000 team members across the USA and Canada.”
Founded in 1968 and headquartered in Orlando, Florida, Red Lobster is the world’s largest casual dining seafood restaurant company and a major buyer of frozen fish products from global suppliers. It will continue to operate as an independent enterprise, with 544 locations across 44 US states and four Canadian provinces.
Tibus commented: “Red Lobster will emerge from Chapter 11 stronger financially and operationally, and with new backers who are resolutely focused on investment and growth. I’m incredibly grateful for the support we’ve received from our team members and diners, and from so many of our landlords and vendors throughout this process.”
