Red Lobster's Chapter 11 plan approved; to exit with more than 540 locations

Red Lobster is moving forward with its restructuring plan months after filing for bankruptcy.

The troubled casual-dining seafood chain has received court approval of its Chapter 11 plan, which will allow it to be acquired by RL Investor Holdings LLC, a newly-created entity backed by Fortress Investment Group. Red Lobster will continue to operate as an independent company, with 544 locations across 44 U.S. states and four Canadian Provinces.

On completion of the acquisition, former P.F. Chang’s CEO Damola Adamolekun will become the CEO of the Red Lobster restaurant chain, and Jonathan Tibus, who has served as the Red Lobster’s CEO since March during the reorganization, will step down from the role and leave the company.

"This is a great day for Red Lobster," said Adamolekun, who worked in private equity before his nearly five years at P.F. Chang's. "With our new backers, we have a comprehensive and long-term investment plan – including a commitment of more than $60 million in new funding – that will help to reinvigorate the iconic brand while keeping the best of its history. Red Lobster has a tremendous future, and I cannot wait to get started on our plan with the company's more than 30,000 team members across the U.S. and Canada. I want to thank Jonathan Tibus and his team for their stewardship, and look forward to welcoming them as frequent Red Lobster guests."