Red Lobster exited its Chapter 11 bankruptcy reorganization Monday and RL Investor Holdings LLC completed its acquisition of the chain, which is now more than 100 units smaller than it was when it filed for protection from its creditors in May.
There are now 545 Red Lobster restaurants in 44 U.S. states and four Canadian provinces. The company is now led by its new chief executive officer, Damola Adamolekun, former CEO of P.F. Chang’s, who replaces Jonathan Tibus, the restructuring expert who Red Lobster hired in March to shepherd it through its bankruptcy.
"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. "From the opening of our first restaurant in 1968, Red Lobster has focused on serving diners high-quality seafood at affordable prices. I've been a Red Lobster fan since my first dining experience as a 9-year-old at our Springfield, Ill, restaurant – and as I've prepared to step into the role of CEO, I've met hundreds of diners across the country who, just like me, are as passionate about Red Lobster now as they were on their first visit."
RL Investor Holdings is controlled by Fortress Investment Group and other major creditors of Red Lobster. When filing for bankruptcy protection, Tibus proposed that the company be sold to its creditors, and that is indeed what happened.
Fortress also owns SPB Hospitality, which owns Krystal, Logan’s Roadhouse, J. Alexander’s, Gordon Biersch Brewery Restaurant, and several other restaurant brands.
Adamolekun indicated in a statement that Fortress’s expertise made it well suited to operate Red Lobster, and said it was committing financial resources to help turn the ailing chain around.
"As part of our new ownership structure, we have backers who have a history of making successful investments in restaurants,” he said. “Our comprehensive and long-term investment plan for Red Lobster includes a commitment of more than $60 million in new funding which will help us to deliver improvements across every aspect of our company. I'm looking forward to working with our 30,000-strong team to bring our plan to life."
Besides affiliates of Fortress, RL Investor Holdings’ other investors are TCW Private Credit and Blue Torch.
Contact Bret Thorn at [email protected]
