Orlando Florida, October 16, 2025
News Summary
Red Lobster has successfully re-emerged from chapter 11 bankruptcy, led by new CEO Damola Adamolekun. After receiving $60 million in revitalization support, the seafood chain implemented menu changes and price adjustments that have rekindled customer interest. This strategic recovery plan not only focused on enhancing offerings but also on restoring the brand’s presence in Florida, where it still operates 42 restaurants despite some closures. The future of Red Lobster now hinges on maintaining traffic and managing costs effectively.
Orlando — Red Lobster successfully emerged from a chapter 11 bankruptcy that ran from May 2024 to September 2024 after a rapid and narrowly executed turnaround led by new chief executive Damola Adamolekun. The company secured initial revitalization support of $60 million from Fortress Investment Group, restored customer interest through menu changes and price adjustments, and regained traction on social media and in restaurants across Florida.
Key developments: rescue, leadership and funding
Damola Adamolekun, a 36-year-old Nigerian immigrant and former investment banker, became CEO of Red Lobster in August 2024 during the company’s chapter 11 bankruptcy from May 2024 to September 2024. He took charge while the brand was under significant financial pressure and implemented a concise business improvement plan that executives and restaurant staff could follow.
The company received initial revitalization support of $60 million from Fortress Investment Group after exiting bankruptcy. Fortress Investment Group is the investment manager that owns the chain and provided the financing that underpinned operations and marketing during the exit and relaunch period.
Turnaround actions and menu changes
The turnaround plan emphasized driving top-line revenue by attracting more customers with new and improved offerings. The turnaround plan involved adding seven new menu items including bacon-wrapped scallops, retaining popular dishes like popcorn shrimp, and drastically reducing margarita prices from $20 to $5. Those menu changes were rolled into a timed Crabfest promotion designed to generate traffic; Red Lobster introduced new menu items as part of the Crabfest promotion, which will be available until September 14.
Management also kept established customer favorites on the menu while using sharper pricing on key items to encourage trial visits. The plan combined product, pricing and local marketing tactics aimed at re-engaging both dine-in guests and social media audiences.
Why bankruptcy happened
Red Lobster’s financial difficulties traced in part to prior costly promotions. The chain’s financial struggles included a $3 million loss over seven weeks during the 2003 “Endless Crab” promotion and an $11 million loss from the “Endless Shrimp” promotion. Those promotions, which were intended to drive visits, ultimately eroded margins and left the brand exposed when traffic softened.
Operations in Florida and local impacts
Founded in 1968 in Lakeland, Florida, and now based in Orlando, Red Lobster has 42 restaurants throughout Florida. The brand remains focused on Florida markets; a location in Hialeah closed its doors in May, and a Red Lobster location in Hialeah closed its doors in May, with its kitchen equipment auctioned off. Despite that closure, remaining locations are still operational in Miami-Dade and Broward counties, among others.
Leadership style and company culture
Adamolekun drew on prior experience in finance and restaurants to shape the recovery. Adamolekun previously worked at Goldman Sachs and served as CEO of P.F. Chang’s restaurant chain. He emphasized the importance of a clear business improvement plan that all employees could understand and support and pushed for a workplace culture where staff could share ideas without favoritism.
Management prioritized quick decision-making during the crisis and encouraged broad participation in problem solving. Adamolekun also identified lessons from a diverse upbringing in Zimbabwe and the Netherlands as influences on his approach to understanding commonalities among people and enabling collaborative teams. He advised small business owners to carefully evaluate the pros and cons before scaling their operations, citing prior promotional missteps as cautionary examples.
Outlook
With new menu items, targeted price adjustments and fresh marketing supported by Fortress Investment Group’s funding, Red Lobster has begun to recapture diner interest across Florida. The chain’s recovery remains dependent on continued traffic gains at individual restaurants and disciplined cost management to prevent prior promotional tactics from undermining margins again.
Fast facts
- Ownership: The chain is owned by Fortress Investment Group, an investment management company.
- Locations in Florida: 42 restaurants throughout Florida.
- Bankruptcy period: Chapter 11 from May 2024 to September 2024.
- CEO: Damola Adamolekun appointed August 2024.
- Promotional losses cited: $3 million over seven weeks (2003 “Endless Crab”); $11 million (“Endless Shrimp”).
- Revitalization support: $60 million initial support from Fortress Investment Group.
FAQ
What happened to Red Lobster?
Red Lobster, a popular seafood chain in South Florida, faced bankruptcy and near failure due to costly promotions such as “Endless Crab” and “Endless Shrimp.”
When was Red Lobster founded and where is it based now?
Founded in 1968 in Lakeland, Florida, and now based in Orlando, Red Lobster has 42 restaurants throughout Florida.
Who owns Red Lobster?
The chain is owned by Fortress Investment Group, an investment management company.
Who is the CEO and when did he take over?
Damola Adamolekun, a 36-year-old Nigerian immigrant and former investment banker, became CEO of Red Lobster in August 2024 during the company’s chapter 11 bankruptcy from May 2024 to September 2024.
What prior experience does the CEO have?
Adamolekun previously worked at Goldman Sachs and served as CEO of P.F. Chang’s restaurant chain.
How was the company supported after bankruptcy?
The company received initial revitalization support of $60 million from Fortress Investment Group after exiting bankruptcy.
What losses did past promotions cause?
The chain’s financial struggles included a $3 million loss over seven weeks during the 2003 “Endless Crab” promotion and an $11 million loss from the “Endless Shrimp” promotion.
What menu changes were part of the turnaround?
The turnaround plan involved adding seven new menu items including bacon-wrapped scallops, retaining popular dishes like popcorn shrimp, and drastically reducing margarita prices from $20 to $5.
Is there a current promotion?
Red Lobster introduced new menu items as part of the Crabfest promotion, which will be available until September 14.
Have any locations closed?
A Red Lobster location in Hialeah closed its doors in May, with its kitchen equipment auctioned off.
Are other Florida locations still open?
Remaining locations are still operational in Miami-Dade and Broward counties, among others.
At-a-glance: Key features of the Red Lobster turnaround
| Feature | Detail |
|---|---|
| Bankruptcy period | Chapter 11 from May 2024 to September 2024 |
| CEO appointment | Damola Adamolekun became CEO in August 2024 |
| Florida locations | 42 restaurants throughout Florida |
| Owner and funding | Owned by Fortress Investment Group; $60 million initial support after exiting bankruptcy |
| Major past losses | $3 million loss over seven weeks (2003 “Endless Crab”); $11 million loss (“Endless Shrimp”) |
| Turnaround menu moves | Added seven new menu items including bacon-wrapped scallops; popcorn shrimp retained; margaritas from $20 to $5 |
| Recent local closure | A Red Lobster location in Hialeah closed its doors in May, with its kitchen equipment auctioned off |
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Additional Resources
- Miami Herald: Red Lobster’s Bankruptcy and Turnaround
- Local 10 News: Crabfest Brings New Items to Red Lobster Menu
- LA Today: The Beginnings of Red Lobster
- USA Today: Red Lobster Restaurants Closing
- Jacksonville.com: Jacksonville Restaurant Closings
- Wikipedia: Red Lobster
- Google Search: Red Lobster
- Google Scholar: Red Lobster
- Encyclopedia Britannica: Red Lobster
- Google News: Red Lobster
Author: STAFF HERE ORLANDO WRITER
ORLANDO STAFF WRITER The ORLANDO STAFF WRITER represents the experienced team at HEREOrlando.com, your go-to source for actionable local news and information in Orlando, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Orlando International Fringe Theatre Festival, Megacon Orlando, and Central Florida Fair. Our coverage extends to key organizations like the Orlando Economic Partnership and Hispanic Chamber of Commerce Metro Orlando, plus leading businesses in leisure and hospitality that power the local economy such as Walt Disney World Resort, AdventHealth, and Universal Orlando. As part of the broader HERE network, including HEREJacksonville.com, HEREPetersburg.com, HERETallahassee.com, and HERETampa.com, we provide comprehensive, credible insights into Florida's dynamic landscape.
