Red Lobster is officially out of bankruptcy process: Here's what's next
FILE-A sign is posted in front of a Red Lobster restaurant on May 14, 2024 in Fremont, California. (Photo by Justin Sullivan/Getty Images)
Red Lobster is out of the bankruptcy process after it was acquired under a court-approved Chapter 11 plan.
RL Investor Holdings LLC is acquiring the seafood chain and will run its 545 restaurants as an independent company, FOX Business reported.
RELATED: Red Lobster may exit bankruptcy protection soon
Damola Adamolekun is the new CEO of Red Lobster and said the company has a long-term investment plan that includes a commitment of over $60 million to help revive the brand, according to a company release.
Adamolekun is replacing CEO Jonathan Tibus, a corporate restructuring specialist who took the top post at Red Lobster in March.
FOX Business noted that the U.S. Bankruptcy Court for the Middle District of Florida on Sept. 5 approved RL Investor Holding’s Chapter 11 plan, clearing a path for Red Lobster to exit the bankruptcy process it began in May.
RELATED: Red Lobster files for bankruptcy after dozens of restaurant closures
Red Lobster filed for Chapter 11 bankruptcy protection in May resulting in the seafood restaurant chain closing dozens of U.S. restaurants, including at least five locations in both California and Florida, and four in both Maryland and Colorado. The bankruptcy petition was signed by Tibus.
Red Lobster dates back to 1968, when the first restaurant opened in Lakeland, Florida.