The private equity firm seeking to rescue Red Lobster turned to a familiar brand when searching for a new leader of the troubled chain.
RL Investor Holdings LLC, a new entity formed by the private equity firm Fortress Investment Group, announced Monday that Damola Adamolekun, the former CEO of P.F. Chang’s, will soon lead Red Lobster.
The plan is contingent on court approval of Fortress’ takeover of the chain because Red Lobster filed for Chapter 11 bankruptcy in May.
Adamolekun, just 35, said in a press release that “Red Lobster is an iconic brand with a tremendous future.”
“I’m looking forward to working with our team members across North America to reinvigorate the brand by making it the best place to work for our employees and improving the experience for our guests,” he said.
His succession comes as the chain plans to close another 23 stores. Red Lobster already closed more than 100 stores this summer as it prepares for the Fortress takeover, CNN reported.
Fortress, which also bought Krystal Restaurants and Logan’s Roadhouse after they declared bankruptcy, has loaned Red Lobster $300 million to help keep it alive, the Wall Street Journal reported.
Adamolekun, who was CEO of P.F. Chang’s from 2020 to 2023, believes that “Red Lobster’s future is brighter now than ever before.” Under his leadership, P.F. Chang’s netted almost one billion in sales in 2023, surpassing its prepandemic sales.
Red Lobster, meanwhile, has struggled to stay afloat as food prices increased and interest in the chain dried up. It was hoping its all-you-can-eat shrimp deal would attract back its shrinking customer base, but the deal led to millions in losses as people took the “all-you-can-eat” edict more seriously than the chain hoped.