Red Lobster has received court approval of its Chapter 11 plan.

As part of the plan, RL Investor Holdings LLC will acquire the Red Lobster restaurant chain from the company. RL Investor Holdings LLC is an entity created by funds managed by affiliates of Fortress Investment Group LLC, alongside co-investors TCW Private Credit and Blue Torch. The acquisition is anticipated to close before the end of September 2024.

Upon completion of the acquisition, Damola Adamolekun will become the CEO of the Red Lobster restaurant chain, and Jonathan Tibus, who has served as the company's CEO during the reorganization, will step down from the role and leave the company.

"This is a great day for Red Lobster," said Adamolekun. "With our new backers, we have a comprehensive and long-term 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. 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. I want to thank Jonathan Tibus and his team for their stewardship, and look forward to welcoming them as frequent Red Lobster guests."

Red Lobster will continue to operate as an independent company, with 544 locations across 44 U.S. states and four Canadian Provinces.

Tibus said, "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. 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. I'm looking forward to cheering on Red Lobster as an ardent fan in the years ahead."

Source: Red Lobster Seafood Co.