Red Lobster has disclosed that it plans to close 23 more restaurants as part of its bankruptcy proceedings. The ailing chain has already shuttered 100 locations.
The disclosure came in a court filing in which the company said it was not renewing leases of 23 restaurant locations as it attempts to return to profitability. The recent and future closings will reduce the chain’s footprint to 500 locations. At one point it had 650.
At the same time, Red Lobster is trying to sell itself to a lender with experience in restaurant management, Fortress Credit Corp., which has extended credit to Red Lobster so that it can continue operations.
Fortress Investment Group this week announced the appointment of Damola Adamolekun, former CEO of P.F. Chang’s, as CEO of RL Investor Holdings LLC, a newly formed company seeking bankruptcy approval to acquire Red Lobster.
Damola Adamolekun - Photo courtesy of RL Investor Holdings LLC
New CEO
Upon court approval of the Red Lobster Chapter 11 plan, Damola Adamolekun will become CEO of the reorganized Company.
“Red Lobster is an iconic brand with a tremendous future,” Adamolekun said. “I’m looking forward to working with our team members across North America to reinvigorate the brand by making it the best place to work for our employees and improving the experience for our guests.”
Adamolekun said Red Lobster employees have demonstrated “extraordinary resilience and dedication” during the chain’s struggles and said the future of the chain is “brighter than ever.”