Judge Approves Red Lobster's Bankruptcy Exit with Fortress Acquisition

Red Lobster Management has received approval from U.S. Bankruptcy Judge Grace Robson to exit Chapter 11 bankruptcy under new ownership led by Fortress Investment Group. The seafood chain, which filed for bankruptcy protection four months ago due to declining sales and mounting losses, plans to emerge with approximately 545 locations in the U.S. and Canada and over 30,000 employees. The acquisition is expected to close by the end of September.

As part of the reorganization, Damola Adamolekun will take over as CEO, replacing Jonathan Tibus, who served during the reorganization process. The company has closed several poorly performing locations and is addressing a dispute with its former largest owner, Thai Union Group Pcl, over the "Ultimate Endless Shrimp" promotion. Despite these challenges, the new ownership is providing additional funding to support Red Lobster's recovery and continued operation as an independent entity.