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Damola Adamolekun, the former CEO of P.F. Chang’s, has been appointed to lead Red Lobster out of bankruptcy.
RL Investor Holdings LLC, a new entity formed by US private equity firm Fortress Investment Group, made the announcement. The plan is contingent on court approval of Fortress Investment Group’s takeover of the chain because Reb Lobster filed for bankruptcy in May 2024.
“Red Lobster is an iconic brand with a tremendous future. I’m looking forward to working with our team members across North America to reinvigorate the brand by making it the best place to work for our employees and improving the experience for our guests,” said Adamolekun.
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“I want to thank all of my future colleagues at Red Lobster who have demonstrated extraordinary resilience and dedication to the franchise during the bankruptcy process. Red Lobster’s future is brighter now than ever before – I cannot wait to get started on our investment plan and to get out and meet diners across the USA and Canada, he said.”
Red Lobster’s Struggles
Orlando, Florida-based Red Lobster, a company that brought affordable shrimp and lobster to middle-class America and grew to become the largest seafood restaurant chain in the world, filed for bankruptcy earlier this year.
The restaurant chain struggled to stay afloat as food prices increased and interest in the chain dried up. According to a declaration filed with a Florida federal bankruptcy court, some negative factors that caused the bankruptcy included inflationary pressures, unfavorable lease contracts, poor locations, and strategic missteps in luring customers.
According to CNN, the company had over $1 billion in debt and less than $30 million in cash. It serves 64 million customers annually and brings in $2 billion in annual sales.
Red Lobster, known for its cheddar bay biscuits, crab legs, and shrimp dishes, has over 578 restaurants across 44 States and four Canadian Provinces. However, CNN reported that the chain has already closed 100 stores this summer and will close another 23 as it prepares for the takeover of Fortress Investment Group.
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Upon court approval of the Red Lobster Chapter 11 plan, the date of which is fixed for early September, Damola Adamolekun will become CEO of the reorganized company.
Meet Damola Adamolekun
Nigerian born-Damola Adamolekun is the former CEO of the global restaurant chain P.F. Chang’s, where he led the company in strategic initiatives that ensured the continued growth and success of one of the world’s most prominent hospitality brands.
Adamolekun also previously served as Chief Strategy Officer at P.F. Chang’s and as a Partner at Paulson & Co., a New York-based investment firm and the principal owner of P.F. Chang’s, where he played a vital role in the sourcing and subsequent management of several of the firm’s most significant investments.
He has been featured in numerous publications, including Forbes, Fortune, Business Insider, Fox Business, Bloomberg News, Yahoo Finance, CNBC, Nation’s Restaurant News, Time Out New York, New York Business Journal, and the Harvard Business Review.
The 35-year-old executive previously worked in Goldman Sachs’s Investment Banking Division and as a Private Equity Associate at TPG Capital. He has also served on the boards of P.F. Chang’s, Inday, the National Restaurant Association, and International Tower Hill Mines.
In 2021, Adamolekun was recognized with three GLOBEE Leadership Gold awards for CEO of the Year: Food and Beverage, CEO of the Year: Hospitality, Travel, Recreation, Leisure, and Top CEO of the Year: The Rising Star, as well as a GLOBEE Leadership Silver award for CEO Achievers: Transformational Leader of the Year, while in 2022 he was named in Nation’s Restaurant News’ Power List among the most innovative and inspiring leaders in the restaurant industry.
Adamolekun received a Bachelor of Arts in Economics and Political Science from Brown University, where he served as President of the Brown Investment Group. He was a member of the Ivy League champion Brown Football team and a Master of Business Administration from Harvard Business School, where he served as Portfolio Manager for the HBS Investment Club.
