Red Lobster Approaches Exit from Bankruptcy #

Red Lobster is one step closer to exiting Chapter 11 bankruptcy after a court approved its restructuring plan. The seafood chain, known for its seafood offerings and cheddar biscuits, filed for bankruptcy protection in May. Red Lobster had faced challenges due to increased competition, expensive leases, last year’s unsuccessful shrimp promotion, and a decline in consumer spending. As part of the plan, RL Investor Holdings will acquire Red Lobster, and Damola Adamolekun will take over as CEO. After streamlining its portfolio, Red Lobster currently operates 544 restaurants in the US and Canada. At least nine other restaurant chains have also filed for bankruptcy this year as high interest rates and reduced consumer spending continue to impact the industry.