A bankruptcy court has approved Red Lobster’s plan to exit Chapter 11, bringing the seafood chain closer to emerging from bankruptcy. The company filed for bankruptcy in May due to competitive pressures, expensive leases, and a failed shrimp promotion. Under a restructuring plan, RL Investor Holdings will acquire Red Lobster by the end of the month. Former P.F. Chang’s CEO, Damola Adamolekun, will become the new CEO. The restructuring includes a $60 million investment to revitalize the brand, which will continue to operate nearly 500 restaurants across North America.
Category
🗞
NewsTranscript
00:00It's Benzinga, and here's what's on the block.
00:02A bankruptcy court has approved Red Lobster's plan to exit Chapter 11, bringing the seafood
00:07chain closer to emerging from bankruptcy.
00:10The company filed for bankruptcy protection in May due to competitive pressures, expensive
00:14leases, and a failed shrimp promotion.
00:17Under a restructuring plan, RL Investor Holdings will acquire Red Lobster by the end of the
00:21month.
00:22Former PF Chang CEO Damila Adamolkan will become the new CEO.
00:26The restructuring includes a $60 million investment to revitalize the brand, which will continue
00:31to operate nearly 500 restaurants across North America.
00:34For all things money, visit Benzinga.com.