The US bankruptcy court has approved the acquisition of Red Lobster by RL Investor Holdings, which will allow the seafood restaurant chain to exit Chapter 11.

RL Investor Holdings LLC is an entity created by funds managed by affiliates of Fortress Investment Group, alongside co-investors TCW Private Credit and Blue Torch. 

Following the acquisition, which is expected to close later this month, former PF Changs boss Damola Adamolekun will become the new CEO of Red Lobster. Jonathan Tibus, who has served as CEO during the reorganization, will leave the company.

The chain will continue to operate as an independent company, with 544 locations across 44 US states and four Canadian provinces.

“With our new backers, we have a comprehensive and long-term investment plan – including a commitment of more than $60 million in new funding – that will help to reinvigorate the iconic brand while keeping the best of its history,” said Adamolekun.

“Red Lobster has a tremendous future, and I cannot wait to get started on our plan with the Company’s more than 30,000 team members across the USA and Canada,” he added.