Red Lobster announced its exit from Chapter 11 bankruptcy on 16 September after gaining the newly created RL Investor Holdings as its new owner and officially appointing Damola Adamolekun as CEO.
RL Investor Holdings is an entity created by funds managed by affiliates of Fortress Investment Group, alongside co-investors TCW Private Credit and Blue Torch. With the company taking over as the chain’s new owner, Red Lobster has exited its bankruptcy status.
“As part of our new ownership structure, we have backers who have a history of making successful investments in restaurants. Our comprehensive and long-term investment plan for Red Lobster includes a commitment of more than USD 60 million [EUR 54 million] in new funding, which will help us to deliver improvements across every aspect of our company,” Adamolekun said. “I’m looking forward to working with our 30,000-strong team to bring our plan to life.”
Post-bankruptcy, Adamolekun said Red Lobster is a stronger, more resilient company. Shedding the bankruptcy label has allowed the chain to “start a new chapter in our history," Adamolekun said.
Though Red Lobster’s bankruptcy status has been left behind, its debts have not.
Samut Sakhon, Thailand-based seafood company Thai Union is one of several companies claiming the Orlando, Florida, U.S.A.-based restaurant chain owes it money.
Thai Union, which once owned a significant share of Red Lobster, claims the chain owes the group around USD 3.7 million (EUR 3.3 million) due to sudden changes in demand forecasts for shrimp.
Thai Union said it built up an excess inventory of shrimp in late 2023 that was custom-produced for Red Lobster – worth around USD 22.9 million (EUR 20.6 million). Red Lobster worked with Thai Union to lessen that inventory, but Thai Union is still seeking USD 3.7 million in related costs due to fluctuations in anticipated demand.
The Red Lobster Official Committee of Unsecured Creditors began investigating the claim in late July, but the investigation “will take some time” to conclude – possibly a few months, Brad Sandler, attorney for the committee, told SeafoodSource.
In the meantime, Red Lobster is aiming to boost its sales and brand reputation post-bankruptcy, including through a new election-themed marketing campaign.
“[Cheddar Bay 2024 is] a campaign aimed at uniting all parties – at least for dinner – [and is a] bite-partisan campaign that champions the values we can all rally behind – cheesiness, freshness, and that warm, buttery goodness we crave,” Red Lobster said.
Focused on growing its restaurant sales in its remaining locations, the company is also taking the opportunity to tout its seafood offerings through the new campaign.
“When it comes to choosing what to eat at Red Lobster, there's no debate the best options are the ones you can always count on, like Maine Lobster Tail, Snow Crab Legs, Walt's Favorite Shrimp, and Garlic Shrimp Scampi,” Red Lobster said. "Put them all together on one plate to ‘unite them for the butter,’ and you've got yourself an Ultimate Feast.”
The Cheddar Bay 2024 campaign gives consumers a chance to win free Red Lobster for four years, which is the length of a U.S. presidential term. Through 10 November, Red Lobster restaurant guests can scan a Cheddar Bay 2024 QR code found on their table for the chance to win Red Lobster free food for four years.
"Over the last few months, our guests have shared countless reasons why they love Red Lobster, and Cheddar Bay Biscuits always rise to the top," Red Lobster Vice President of Marketing Jeff Matray said. ”As election season heats up, there's one thing we can all rally behind – a shared love for Cheddar Bay Biscuits. Red Lobster food brings people together, and we're excited to unite everyone – even if it's just over lunch or dinner,” Matray said.
Along with the in-store promotions, Red Lobster is releasing a Campaign Kit with fun merchandise, including Cheddar Bay 2024 lawn signs, T-shirts, hats, and buttons. Guests can visit the chain’s website for the chance to claim the Red Lobster merchandise on a first-come, first-served basis while supplies last, the company said.
Red Lobster's Cheddar Bay 2024 campaign will also feature several TV and digital ad spots in the form of parody political commercials, such as an ad calling out the “stale policies” from other “restaurant breads.”
