Damola Adamolekun
Photo: Fortress Investment Group.
Fortress Investment Group has appointed Damola Adamolekun as CEO of RL Investor Holdings LLC, which is seeking court approval to acquire the bankrupt seafood restaurant chain Red Lobster.
Upon approval of the Red Lobster Chapter 11 plan, Adamolekun will also become CEO of the reorganized Red Lobster, the group has announced.
The acquisition, led by Fortress with co-investors TCW Private Credit and Blue Torch, aims to revitalize the iconic restaurant chain, which operates 544 locations across the U.S. and Canada.
Adamolekun brings significant leadership experience to the role, having previously served as CEO of US casual-dining chain P.F. Chang's, and is considered a rising star in US business and finance.
“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,” said Adamolekun, in a Fortress press release.
“I want to thank all of my future colleagues at Red Lobster who have demonstrated extraordinary resilience and dedication to the franchise during the bankruptcy process. 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.”
“We’re excited to bring Damola on board to drive our investment plan for Red Lobster,” added Morgan McClure, Managing Director at Fortress. “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.”
Red Lobster was founded in 1968, and by 2020 operated at over 700 locations around the world. Global seafood group Thai Union acquired a 49% stake of the restaurant chain in 2020.
In January 2024, Thai Union withdrew its investment in Red Lobster, citing the COVID-19 pandemic, "sustained industry headwinds, higher interest rates and rising material and labor costs" as among its reasons for ending its involvement, making a loss of $530 million.
Red Lobster, in turn, has blamed Thai Union's "outsize influence" as contributing to its financial woes, as detailed in the restaurant chain's publicly-available bankruptcy filing.
The restaurant chain filed for bankruptcy in May 2024, and has closed outlets at over 123 locations over the past months, according to court filings reported by news outlet CNN.