Red Lobster Management LLC, the iconic seafood restaurant chain, has taken a significant step toward a promising future, announcing the court approval of its Chapter 11 plan. Under this plan, RL Investor Holdings LLC, a consortium led by Fortress Investment Group LLC and co-investors TCW Private Credit and Blue Torch, will acquire the beloved Red Lobster® restaurant chain. The acquisition is expected to close by the end of September.
A New Chapter for Red Lobster
As part of the restructuring, Red Lobster will continue to operate as an independent company, with 544 locations across 44 U.S. states and four Canadian provinces. The new ownership, backed by more than $60 million in committed funding, aims to revitalize the brand while honoring its rich history.
Incoming CEO Damola Adamolekun is enthusiastic about the future of Red Lobster. “This is a great day for Red Lobster,” Adamolekun said. “With our new backers, we have a comprehensive and long-term investment plan that will help to reinvigorate the iconic brand while keeping the best of its history. Red Lobster has a tremendous future, and I cannot wait to get started on our plan with the Company’s more than 30,000 team members across the USA and Canada.”
The transition comes as Red Lobster emerges from a challenging period, having undergone a Chapter 11 restructuring process. Adamolekun takes the reins from Jonathan Tibus, who has served as CEO during the reorganization. Tibus will step down once the acquisition is finalized.
Strong Leadership to Guide the Future
Adamolekun, a seasoned leader, is set to build on the foundation Tibus and his team established during the restructuring. With new ownership and strategic backing, Red Lobster is positioned for growth and innovation. “We have the support and resources to ensure Red Lobster remains a leader in the seafood dining space while evolving to meet the changing needs of today’s consumers,” Adamolekun added.
Jonathan Tibus expressed pride in the progress Red Lobster has made. “I’m proud of what Red Lobster has achieved during this restructuring – the Company will emerge from Chapter 11 stronger financially and operationally, and with new backers who are resolutely focused on investment and growth,” Tibus said. “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.”
Path To A Bright Future for an Iconic Brand
Red Lobster’s future has a bright light as it moves forward with a renewed focus on investment, growth, and operational strength. The company’s new leadership and financial backing set the stage for a new chapter of innovation and expansion while still serving up the signature dishes that customers have loved for decades.
With more than 30,000 dedicated team members, Red Lobster is ready to continue delighting diners across North America and beyond. As the new leadership takes over, Red Lobster’s commitment to quality and customer satisfaction remains steadfast, ensuring that its legacy as a seafood destination will thrive for years to come.
For more information on Red Lobster and its future plans, visit RedLobster.com.
Note to our readers: Red Lobster North America locations are corporately owned. However, according to their website, “to carry out our vision of being ‘where the world goes for seafood now and for generations’,” they continue to expand their international footprint, having over 40 franchised restaurants in 9 countries and 1 U.S. territory as of September 8th, 2024. For this reason, we listed this article under Chain News but wanted to share this ongoing story with our reader base as it has a franchise component.
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