Investment group buying Red Lobster names former PF Chang's executive as next CEO
The investment group aiming to purchase Red Lobster after it emerges from Chapter 11 bankruptcy named who it wants to helm the company Monday.
Fortress Investment Group announced that former P.F. Chang's CEO Damola Adamolekun will take on the same role at RL Investor Holdings LLC, the company Fortress created to purchase the seafood restaurant.
"Red Lobster’s future is brighter now than ever before – I cannot wait to get started on our investment plan, and to get out and meet diners across the USA and Canada," Adamolekun said in a media release announcing the decision.
Adamolekun worked as CEO and Chief Strategy Officer of P.F. Chang's and was a partner at Paulson & Co., a New York investment firm and the chain's principal owner, according to the release.
The Red Lobster takeover marks the latest in a string of acquisitions by Fortress including Vice Media and Alamo Drafthouse, which was later sold to Sony Pictures Entertainment, Reuters reported.
"Fortress has a strong track record of operating and improving iconic American restaurants, and Damola’s energy, leadership and experience will be key to restoring Red Lobster’s status as an iconic and admired American brand," Morgan McClure, Managing Director at Fortress said in the release.
Red Lobster closes locations as bankruptcy proceedings continue
Red Lobster filed for bankruptcy on May 19 after closing dozens of locations and announcing that it intended to "drive operational improvements" by simplifying the business. Documents later filed in federal court revealed that the bankruptcy was primarily due to significant debt, a carousel of CEOs, an all-you-can-eat shrimp fiasco and a 30% drop in guests since 2019.
RL Investor Holdings, previously known as RL Purchaser LLC and consists of Red Lobster's lenders, bid $376 million to acquire the company's remaining assets, according to the Orlando Business Journal.
Fortress said in the announcement that Red Lobster will operate as an independent company with 544 locations in 44 U.S. states and four Canadian provinces.
In a 23-page court document filed Aug. 22 in U.S. Bankruptcy Court for the Middle District of Florida, the Orlando-based company said it is rejecting the leases of an additional 23 locations by Saturday, Aug. 31, bringing the total number of closed restaurants to 129.
Contributing: Natalie Neysa Alund and Gabe Hauari, USA TODAY.