Red Lobster CEO says chain may shutter more restaurants: WSJ

Mike Snider, USA TODAY

Thu, February 19, 2026 at 5:48 AM GMT+9 3 min read

Red Lobster closed about 130 locations during its 2024 bankruptcy, but may need to close more to continue its successful post-bankruptcy emergence.

CEO Damola Adamolekun told The Wall Street Journal that the chain is assessing its current roster of restaurants and the locations’ leases with a potential for additional closures. “There’s a lot of positive signs, but we inherited a very damaged brand, so there’s still work to do to repair all of that,” Adamolekun, who became the chain’s chief executive in August 2024, said in an interview with the outlet.

Red Lobster would prefer to drop dozens of lower-performing restaurants, if possible, the Journal reported, citing people familiar with the company’s discussions.

Red Lobster closed 129 locations amid the months surrounding its May 2024 bankruptcy filing. The bankruptcy arose from multiple problems including the chain’s significant debt, management changes, and a decline in customers along with a problematic all-you-can-eat shrimp offering, court documents revealed. The “endless shrimp” promotion resulted in $11 million of the company’s $76 million net loss in 2023, Reuters reported.

Red Lobster is one of several major casual-dining chains, including Hooters and TGI Fridays, to file for bankruptcy over the last two years.

**Chick-fil-A: **Restaurants are giving out free chicken biscuits. How to get one.

Red Lobster’s post-bankruptcy menu means no more ‘endless shrimp’

Red Lobster emerged from bankruptcy in September 2024 with a restructuring plan and more than $60 million in funding from RL Investor Holdings, formed to acquire the chain by Fortress Investment Group with co-investors TCW Private Credit and Blue Torch, another credit firm. A few weeks earlier, Fortress named Adamolekun, the former CEO of P.F. Chang’s, as the new Red Lobster CEO.

Since taking over, Adamolekun has made easy initial changes at Red Lobster, such as changing music and putting liners on tables, with plans to remodel some locations. He also removed the endless shrimp menu item to relieve stress on the restaurants’ kitchens.

Adamolekun told the Journal the chain’s sales have increased by about 10% from last year, with younger people exploring Red Lobster.

Red Lobster, which has about 480 locations in 44 states listed on its website, did see an uptick in foot traffic at its restaurants over the summer and into fall – 18% higher in July 2025 – according to Placer.ai, which estimates visits to locations by tracking millions of devices and using machine learning. Traffic declined in December and January, but so did traffic across the entire full-service dining category, according to the firm’s research.

Story Continues  

Red Lobster did not respond to a request for comment for this story.

The CEO of Red Lobster said the chain may close additional restaurants as part of its post-bankruptcy restructuring plan.

Adamolekun did not say how many closures might be coming. Some struggling Red Lobster locations would have already been closed, he told the Journal, if not for the chain’s complex lease situation, with leases for many lower-performing restaurants linked to better-performing ones.

In other cost-cutting measures, Red Lobster in December 2025 reduced its workforce by about 1%, resulting in the loss of less than 200 restaurant-level employees, according to Restaurant Business. The company has also laid off about 10% of its corporate staff in recent months, the Journal reported.

Red Lobster is also attempting to renegotiate with vendors as tariffs have resulted in pricier imported seafood, according to the Journal.

Contributing: Gabe Hauari and Jonathan Limehouse.

_Mike Snider is a national trending news reporter for USA TODAY. You can follow him on Threads, Bluesky, X and email him at  mikegsnider  &  @mikegsnider.bsky.social _ &  @mikesnider & msnider@usatoday.com.

This article originally appeared on USA TODAY: Red Lobster CEO reportedly looking to close more restaurants: WSJ

Terms and Privacy Policy

Privacy Dashboard

More Info