Red Lobster cleared to exit Chapter 11 bankruptcy protection

Published On Sep 6, 2024, 5:39 AM

Red Lobster has received court approval to exit Chapter 11 bankruptcy protection after facing financial difficulties that led to the closure of several locations. The chain, now set to be acquired by RL Investor Holdings LLC backed by Fortress Investment Group, plans to revitalize its operations with over $60 million in new funding. The change in leadership will see Damola Adamolekun take over as CEO. Red Lobster will continue to operate independently with 544 locations across North America, aiming to address prior operational missteps, including unsustainable promotional strategies.