Seafood restaurant chain Red Lobster has exited Chapter 11 bankruptcy restructuring after completion of its acquisition by RL Investor Holdings.

RL Investor Holdings, formed by funds managed by affiliates of Fortress Investment Group, alongside co-investors TCW Private Credit and Blue Torch, has facilitated Red Lobster's transition into an independent, privately held entity.

With the finalisation of the acquisition, Red Lobster has appointed Damola Adamolekun as the company’s new CEO.

Red Lobster operates 545 restaurants across 44 states in the US and four Canadian provinces.

Adamolekun said: “Red Lobster is now a stronger, more resilient company, and today is the start of a new chapter in our history.

“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 $60m in new funding which will help us to deliver improvements across every aspect of our company. I'm looking forward to working with our 30,000-strong team to bring our plan to life.”

Red Lobster and its management secured court approval for their Chapter 11 reorganisation plan in September 2024.

This move allowed RL Investor Holdings — backed by Fortress Investment Group, TCW Private Credit and Blue Torch — to acquire the Red Lobster chain.

In May 2024, it was reported that Red Lobster intended to shut down a minimum of 48 locations across the US due to financial difficulties.

TAGeX Brands, a restaurant liquidation company, organised an online auction for Red Lobster’s assets, including kitchen equipment and furnishings.