Red Lobster announced its exit from Chapter 11 bankruptcy on 16 September after gaining the newly created RL Investor Holdings as its new owner and officially appointing Damola Adamolekun as CEO.
RL Investor Holdings is an entity created by funds managed by affiliates of Fortress Investment Group, alongside co-investors TCW Private Credit and Blue Torch. With the company taking over as the chain’s new owner, Red Lobster has exited its bankruptcy status.
“As part of our new ownership structure, we have backers who have a history of making successful investments in restaurants. Our comprehensive and long-term investment plan for Red Lobster includes a commitment of more than USD 60 million [EUR 54 million] in new funding, which will help us to deliver improvements across every aspect of our company,” Adamolekun said. “I’m looking forward to working with our 30,000-strong team to bring our plan to life.”
Post-bankruptcy, Adamolekun said Red Lobster is a stronger, more resilient company. Shedding the bankruptcy label has allowed the chain to “start a new chapter in our history," Adamolekun said.
Though Red Lobster’s bankruptcy status has been left behind, its debts have not.
Samut Sakhon, Thailand-based seafood company Thai Union is one of several companies claiming the Orlando, Florida, U.S.A.-based restaurant chain owes it money.
Thai Union, which once owned a significant share of Red Lobster, claims the chain owes the group around USD 3.7 million (EUR 3.3 million) due to sudden changes in demand forecasts for shrimp.
Thai Union said it built up an excess inventory of shrimp in late 2023 that was custom-produced for Red Lobster – worth around USD 22.9 million (EUR 20.6 million). Red Lobster worked with Thai Union to lessen that inventory, but Thai Union is still seeking USD 3.7 million in related costs due to fluctuations in anticipated demand.
The Red Lobster Official Committee of Unsecured Creditors began investigating the claim in late July, but the investigation “will take some time” to conclude – possibly a few months, Brad Sandler, attorney for the committee, told SeafoodSource.
Focused on growing its restaurant sales in its remaining locations, the company is also ...
