The investment firm set to acquire Red Lobster out of bankruptcy has named a new CEO for the chain.
Damola Adamolekun, the former CEO of P.F. Chang’s, will take the reins of the seafood giant after the sale to a group led by Fortress Investment Group is finalized.
Adamolekun has a background in investment banking and was a partner at Paulson & Co. when it took a stake in P.F. Chang’s in 2019. He was then tapped to lead the Asian casual-dining chain as CEO. He helped guide Chang’s through the pandemic and led a refresh of its restaurants, menu and technology. He also oversaw the opening of 10 new P.F. Chang’s, including a Manhattan flagship.
His performance there made him a rising star in the industry. But he stepped down last August and returned to Paulson & Co. In January, he founded a family office, Cedar Lane Investments, and joined Garnett Station Partners as an operating partner.
He will re-enter the restaurant industry with a challenging situation at Red Lobster, which has struggled for years with waning demand, mismanagement and burdensome leases. The Orlando-based chain has closed 93 locations this year amid bankruptcy proceedings and will close about two dozen more this week, bringing its total footprint to just over 500 restaurants in the U.S. and Canada.
At the same time, the 56-year-old chain remains the largest seafood chain in the country and one of the most well-known restaurant brands in the world.
“Red Lobster is an iconic brand with a tremendous future,” Adamolekun said in a statement. “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.”
He added that Red Lobster’s future is “brighter now than ever before.”
Adamolekun will replace existing CEO Jonathan Tibus, a restructuring expert who was hired to guide Red Lobster through bankruptcy.
“We’re excited to bring Damola on board to drive our investment plan for Red Lobster,” said Morgan McClure, managing director at Fortress, in a statement. “Fortress has a strong track record of operating and improving iconic American restaurants, and Damola’s energy, leadership and experience will be key to restoring Red Lobster’s status as an iconic and admired American brand.”
Fortress is the owner of SPB Hospitality Group, which bought a number of struggling brands out of bankruptcy, including Krystal, Logan’s Roadhouse and Old Chicago Pizza.
It was the stalking-horse bidder for Red Lobster and won the right to acquire the chain after no other buyers came forward by the July 19 deadline.
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