Red Lobster restaurant chain secures survival at last

US seafood chain Red Lobster has been saved from bankruptcy thanks to a consortium of investors.

The group operates hundreds of restaurants across the United States, Asia and Central America, and is a huge buyer of seafood, both farmed and wild caught.

The group has since slimmed down its restaurant portfolio since it moved to stave off collapse five months ago.

Observers believed that Red Lobster’s former “eat all you can” shrimp campaign was simply not sustainable, and dragged the chain down at a time when restaurants were suffering from the economic after effects of Covid.

The seafood chain, which had filed for bankruptcy, announced yesterday that it has exited Chapter 11 restructuring and completed its acquisition by RL Investor Holdings LLC.

RL is an entity created by funds managed by affiliates of Fortress Investment Group alongside co-investors TCW Private Credit and Blue Torch.

The chain also has a new CEO in Damola Adamolekun, the former CEO of the casual restaurant dining chain PF Chang’s.

He said: “From the opening of our first restaurant in 1968, Red Lobster has focused on serving diners high-quality seafood at affordable prices.

“I’ve been a Red Lobster fan since my first dining experience as a nine year old at our Springfield, Illinois , restaurant… I’ve met hundreds of diners across the country who, just like me, are as passionate about Red Lobster now as they were on their first visit.”

Adamolekun also said that as part of the new ownership structure, Red Lobster now has backers who have a history of making successful investments in restaurants.