The investment group planning to acquire Red Lobster following its Chapter 11 bankruptcy has revealed its choice for the company’s leadership.
On Monday, Fortress Investment Group announced that Damola Adamolekun, the former CEO of P.F. Chang’s, will step into the role of CEO at RL Investor Holdings LLC, the entity Fortress established to acquire the seafood restaurant chain.
Accoridng to USA Today Adamolekun said in a media release announcing the decision that
“Red Lobster’s future is brighter now than ever before – I cannot wait to get started on our investment plan, and to get out and meet diners across the USA and Canada.”
Adamolekun previously served as both CEO and Chief Strategy Officer of P.F. Chang’s and was also a partner at Paulson & Co., the New York investment firm that owned a majority stake in the restaurant chain, according to the announcement.
The acquisition of Red Lobster is the latest in a series of strategic purchases by Fortress, which has also acquired Vice Media and Alamo Drafthouse, the latter of which was eventually sold to Sony Pictures Entertainment, as reported by Reuters.
“Fortress has a strong track record of operating and improving iconic American restaurants, and Damola’s energy, leadership and experience will be key to restoring Red Lobster’s status as an iconic and admired American brand,” Morgan McClure, Managing Director at Fortress said in the release.
Red Lobster filed for bankruptcy on May 19 after closing dozens of locations and announcing that it intended to “drive operational improvements” by simplifying the business. Documents later filed in federal court revealed that the bankruptcy was primarily due to significant debt, a carousel of CEOs, an all-you-can-eat shrimp fiasco and a 30% drop in guests since 2019.
RL Investor Holdings, previously known as RL Purchaser LLC and consists of Red Lobster’s lenders, bid $376 million to acquire the company’s remaining assets, according to the Orlando Business Journal.
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