Red Lobster’s Inpiring New 35-Year-Old CEO Steers Company Out Of Bankruptcy
Red Lobster is pulling out all the stops as it emerges from bankruptcy. The company has just appointed Damola Adamolekun as its new CEO, a private-equity executive, and former CEO of P.F. Chang’s. It’s currently recovering from millions of dollars in losses, a revolving door of CEOS, and a slew of restaurant closures, which led to bankruptcy in May. Previously, Adamolekun was a managing partner at Paulson & Co, a hedge fund that purchased P.F. Chang’s for $700 million in 2019, per the National Restaurant Association. He eventually was tasked with managing P.F. Chang’s portfolio of over 200 restaurant locations, subsequently increasing its annual revenue to $1 billion.
“Red Lobster is now a stronger, more resilient company, and today is the start of a new chapter in our history,” said Damola Adamolekun, CEO of Red Lobster. “From the opening of our first restaurant in 1968, Red Lobster has focused on serving diners high-quality seafood at affordable prices. I’ve been a Red Lobster fan since my first dining experience as a 9-year-old at our Springfield, Ill, restaurant – and as I’ve prepared to step into the role of CEO, I’ve met hundreds of diners across the country who, just like me, are as passionate about Red Lobster now as they were on their first visit.”
Red Lobster officially filed Chapter 11 protection in May 2024, after years of increased food and labor costs, underperforming restaurants, and exorbitant operational expenses. Though intended to bring in revenue, last year’s Ultimate Endless Shrimp promotion only fast-tracked Red Lobster to bankruptcy. It initially increased sales before collapsing under an unexpectedly high demand. In response, Red Lobster’s parent company, Thai Union, attempted to raise the price from $20 to $25, which only made things worse.
Now at the helm, Adamolekun has set his sights on revitalizing the once uber-popular restaurant. He plans to enlist several financial backers with a history of successful restaurant investments. On top of that, Red Lobster has committed more than $60 million to improve every aspect of the company. It’s now an independent, privately-held company with 545 locations across 44 states and four Canadian provinces.
