Red Lobster: Rescue on the Home Stretch

Red Lobster may soon be out of the woods after a federal judge approved the plan to save the restaurant chain. The plan involves the chain recovering from a disastrous "endless shrimp" promotion, massive debt, and a general decline in customer numbers. However, 23 more locations had to be closed beforehand, including three in Florida. Red Lobster will now be taken over by RL Investor Holdings LLC, a newly formed entity organized and controlled by Fortress Investment Group LLC. The press release stated that Red Lobster will continue to operate as an independent company with 544 locations in 44 U.S. states and four Canadian provinces. Spokesperson Gordon Runté stated that Fortress also controls SPB Hospitality, a company that owns brands like Logan's Roadhouse, Krystal, Old Chicago Pizza & Taproom, and Twisted Tenders. In recent years, Fortress has acquired several bankrupt companies, including Vice Media and Alamo Drafthouse. In parallel with the takeover, Red Lobster has launched a new campaign where one winner will receive free meals for an entire presidential term. This initiative is part of a strategic realignment under new CEO Damola Adamolekun, who emphasized, "We will not repeat this." According to analysts, not only the shrimp promotion but also inflation-related price increases, above-average lease obligations, and operational decisions contributed to the bankruptcy. Just a week ago, Red Lobster closed the locations in Fort Walton Beach, Pensacola, and Port Richey. According to court documents, more than a dozen other locations in Florida could have been closed. A look at Red Lobster's website and Google listings showed that some of these locations will now remain open.