Red Lobster CEO admits more closures will happen as restaurant attempts a brand comeback
Restaurant chain at risk of closing more stores due to ‘damaged brand’
- Red Lobster CEO Damola Adamolekun is reviewing restaurant leases and closing underperforming sites as the seafood chain continues its recovery from bankruptcy.
- The company emerged from Chapter 11 bankruptcy in September 2024 after being acquired and receiving approximately $70 million (£55 million) in new investments.
- Since becoming CEO in September 2024, Adamolekun has overseen menu overhauls, the introduction of a happy hour, and a refreshed marketing strategy to revitalize the brand.
- A significant financial challenge stems from 2014 sale-leaseback agreements, which burdened Red Lobster with expensive leases for many underperforming locations.
- Despite these challenges, the chain has reported a 10% increase in sales and an 18% rise in customer visits in July, partly driven by viral seafood boils.
Bookmark popover
Removed from bookmarks