Struggling restaurant chain Red Lobster is set to name a new CEO after the chain's sale.
Damola Adamolekun, who recently headed up P.F Chang's, will be named after a court approves the sale to a group of lenders of the bankrupt seafood chain. The news was first reported by the Wall Street Journal.
RL Investor Holdings LLC is a new entity that is set to acquire the chain. It has been created by funds managed by affiliates of Fortress Investment Group, TCW Private Credit and Blue Torch.
Red Lobster filed for Chapter 11 bankruptcy protection in May with liabilities listed between $1 billion and $10 billion.
The company hoped to use the bankruptcy proceeding to improve operations and close some locations. The casual dining chain closed 100 locations shortly before the bankruptcy announcement.
Red Lobster reported it lost a record $12.5 million during the fourth quarter of 2023, following a third-quarter loss of about $11 million.
In November, Chief Financial Officer Ludovic Garnier of parent company Thai Union Group said last year's decision to make Ultimate Endless Shrimp a permanent menu item instead of a seasonal promotion was a key factor for the loss but other major factors were also to blame.
Red Lobster will continue to operate as an independent company, with 544 locations across 44 U.S. states and four Canadian Providences.
"Red Lobster is an iconic brand with a tremendous future. 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," said Adamolekun.
