Red Lobster taps former P.F. Chang’s head as CEO in bankruptcy exit plan

(Reuters) – Damola Adamolekun, former CEO of P.F. Chang’s, will take the helm at Red Lobster after a court approval of the restaurant chain’s bankruptcy plan, investment management firm Fortress said on Monday.

Lenders, including Fortress Investment Group, are seeking approval for RL Investor Holdings, a newly formed entity, to acquire Red Lobster out of bankruptcy.

Adamolekun, who stepped down from his role as the boss of restaurant chain P.F. Chang’s in 2023, will become the CEO of RL Investor, Fortress said.

Red Lobster filed for bankruptcy in Florida in May with about $300 million in debt and a plan to close some restaurants and sell itself to its lenders or a higher bidder.

Red Lobster would continue to operate as an independent company, with 544 locations across 44 states in the U.S. and four Canadian provinces, Fortress said.

(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Sriraj Kalluvila)