A little less than four months after Red Lobster filed for Chapter 11 bankruptcy, the seafood restaurant chain received court approval for its restructuring plan to continue operating under a new firm.
Red Lobster will be acquired by RL Investor Holdings LLC — an “entity created by funds managed by affiliates of Fortress Investment Group LLC” — alongside co-investors TCW Private Credit and Blue Torch, the company announced in a press release Thursday. The acquisition is anticipated to close before the end of September.
Once the acquisition is complete, Red Lobster will also bring in new leadership. Jonathan Tibus, who has served as the company’s CEO, will step down from his role and leave the Red Lobster restaurant chain. Damola Adamolekun, the former CEO of P.F. Chang’s, will succeed Tibus.
“This is a great day for Red Lobster,” Adamolekun said in a statement. “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,” he added.
Red Lobster filed for bankruptcy on May 19 after shutting down nearly 50 restaurant locations across the U.S and liquidating restaurant equipment via auctions. A day later, Red Lobster said it was investigating a “pattern of mismanagement” by its majority owner Thai Union, which played a huge role in the restaurant chain’s “endless shrimp” promotion that caused $11 million in operating losses, according to court documents. Per CNN, the company said it was more than $1 billion in debt and had less than $30 million available in cash. As part of its Chapter 11 reorganization, Red Lobster said it would sell its business to lenders and receive financing to continue operations. The company also would continue to close more restaurants.
In an attempt to save the beloved seafood chain, Flavor Flav vowed to do everything he could to “help save one of America’s greatest dining dynasties.” In June, the Public Enemy rapper shared on X that he had visited a Red Lobster location and ordered everything on the menu.
“Ya boy meant it when I said I was gonna do anything and everything to help @redlobster and save the cheddar bay biscuits,,, ordered the whole menu,!!!” Flavor Flav wrote alongside a photo of himself posing in front of an elaborate spread of Red Lobster menu items, including shrimp scampi, popcorn shrimp and clam chowder.
Red Lobster said in its recent press release that it will continue to operate as an independent company. The chain currently has 578 restaurants across 44 states and Canada, and serves approximately 64 million customers a year.
“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 in a statement. “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.”
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In addition to advancing its restructuring plan, Red Lobster launched its very own “bite-partisan campaign” in anticipation of the Harris-Trump presidential debate on Sept. 10. Called Cheddar Bay 2024, the campaign “champions the values we can all rally behind — cheesiness, freshness, and that warm, buttery goodness we crave — because when biscuits rise, America thrives,” according to a press release.
Up until Nov. 10, 2024, Red Lobster consumers can visit their local restaurant and scan a Cheddar Bay 2024 QR code found on the table for the chance to win the brand’s famed Cheddar Bay Biscuits and seafood for a presidential term — an entire four years.
Red Lobster’s campaign also comes with its own merch. The official “Campaign Kit” includes Cheddar Bay 2024 lawn signs, t-shirts, hats and buttons all touting the Cheddar Bay Biscuits. Items are available on the campaign’s official website on a first-come, first-serve basis while supplies last.
“Over the last few months, our guests have shared countless reasons why they love Red Lobster and Cheddar Bay Biscuits always rise to the top,” said Jeff Matray, vice president of marketing at Red Lobster. “As election season heats up, there’s one thing we can all rally behind – a shared love for Cheddar Bay Biscuits. The truth is, Red Lobster food brings people together, and we’re excited to unite everyone, even if it’s just over lunch or dinner.”
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