Red Lobster has brought in new leadership to turn the company around after its recent bankruptcy.
Damola Adamolekun, the former CEO of Asian fusion restaurant chain PF Chang’s, has been named Red Lobster’s new CEO and will lead the company’s restructuring process, a coalition of investors announced on Monday.
Red Lobster filed for Chapter 11 bankruptcy protection in May, saddled with more than $1 billion in debt, after the company faced a series of setbacks, including rising costs and changing consumer tastes, Business Insider reported in May.
The restaurants’ previous owner, Thai Union Group, announced it was exiting the company due to heavy financial losses. The group acquired a minority stake in 2016 and a majority stake in 2020, but has struggled to cope with the brand’s declining sales and rising costs, including huge losses from its $20 “endless shrimp” promotion, BI reported in May.
The company secured $100 million from lenders in May, who took control of the business.
Enter Adamolkun, the 35-year-old who was most recently an operating partner at private equity firm Garnet Station Partners, tasked by Red Lobster’s financiers to take over the restaurant business.
Adamolekun previously held the helm of PF Chands from June 2020 to August 2023. He oversaw the company through the challenges brought about by the COVID-19 pandemic.
The restaurant has shifted its operations to focus on technology for “online optimization and deploying staff into new roles,” Adamolekun told BI in 2022.
The company told the Journal that under his leadership, PF Chang’s will pivot to take-out service and resume expansion efforts, adding about 225 stores in 2023.
In an interview with BI in 2022, Adamolkun stressed the importance of adaptable, customer-focused and transparent leadership.
“From day one, I’ve prioritized being out there and speaking to my team in person over internal town hall meetings,” he said.
He added that maintaining “long-term objectives and strategic direction” is key to remaining resilient amid a changing market environment.
The next CEO is now looking to revitalize the Red Lobster brand.
“Red Lobster is an iconic brand with a great future,” Adamol-Kun said in a statement.
The Harvard Business School graduate said he wants to improve the customer experience and find new ways to engage with customers to bring stability and growth back to the company.
Adamolekun will take over as CEO of Red Lobster next month as the chain waits for court approval of its sale to a buyout group led by Fortress Investment Group, according to The Wall Street Journal. The restaurant operates about 550 locations in the United States and Canada.
