Red Lobster has exited Chapter 11 bankruptcy protection after a U.S. bankruptcy judge approved the restaurant's reorganization plan. Asset manager Fortress Investment Group acquired the casual dining chain, which lost $76 million in 2023 and will take it private.

Damola Adamolekun, who was previously the chief executive officer of P.F. Chang's, was named the new CEO of Red Lobster.

"Red Lobster is now a stronger, more resilient company, and today is the start of a new chapter in our history," Adamolekun said in a press release on Monday (September 16).

While Red Lobster was forced to close down over 100 restaurants across the country in a bid to cut costs, the newly formed company, RL Investor Holdings LLC, will continue to operate 545 restaurants in 44 states and four Canadian provinces.

"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 $60 million in new funding which will help us to deliver improvements across every aspect of our company. I'm looking forward to working with our 30,000-strong team to bring our plan to life," Adamolekun continued.

While Red Lobster was able to come out of bankruptcy protection looking to make a comeback, other casual dining chains continue to struggle as they close locations across the country, including Burger-Fi, Cheddar Bay Biscuits, Boston Market, Pizza Hutt, and Cracker Barrel.

KOA Sports with Dave Logan, Alfred Williams & Ryan Edwards