• by Tanya Gazdik , August 28, 2024

A former P.F. Chang executive is heading to financially troubled Red Lobster, pending court approval. 

“Fortress Investment Group has appointed Damola Adamolekun, the former head of P.F. Chang’s China Bistro, as CEO of RL Investor Holdings,” according to Chain Store Age. “RL Investor Holdings is a new entity that is seeking bankruptcy court approval to acquire the Reb Lobster chain. It has been created by funds managed by affiliates of Fortress alongside co-investors TCW Private Credit and Blue Torch. The casual-dining seafood chain filed for bankruptcy in May with plans to sell itself.”

Adamolekun, who previously worked in the investment banking division of Goldman Sachs and as a private equity associate at TPG Capital, called Red Lobster “an iconic brand with a tremendous future.” 

The announcement comes after filings on Thursday in the United States Bankruptcy Court for the Middle District of Florida announcing the closure of another 23 Red Lobster locations. 

“Red Lobster rejected the leases of those locations, saying they were a drain on financial resources,” according to Nation’s Restaurant News. “Red Lobster had previously closed 93 restaurants in the run up to its bankruptcy filing and has subsequently closed a number of locations since. The press release announcing Adamolekun’s tentative appointment put the current unit count of the chain at 544 restaurants in 44 states and four Canadian provinces. A hearing on the sale of Red Lobster is scheduled for Sept. 5.”

Adamolekun, 35,  moved to P.F. Chang's during the pandemic and pivoted its business to accommodate more carry-out orders, notes Business Insider. 

The National Restaurant Association calls him a “biz whiz kid.” 

Documents filed in federal court reveal that the fast casual restaurant’s bankruptcy was primarily due to significant debt, a carousel of CEOs, an all-you-can-eat shrimp fiasco and a 30% drop in guests since 2019, according to USA Today.