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Red Lobster Signals More Closures as CEO Reviews Leases

Costly long‑term leases are pushing the seafood chain to prune weaker sites.

Overview

  • CEO Damola Adamolekun told the Wall Street Journal the company is assessing its real‑estate footprint and expects additional shutdowns of underperforming restaurants.
  • One report says the review could result in dozens of closures this year, with no specific locations or final tally announced.
  • The chain exited Chapter 11 in September 2024 after a roughly $70 million recapitalization, having already shuttered more than 100 locations during bankruptcy.
  • Sales are up about 10% year over year and traffic has improved, yet the company has not returned to pre‑bankruptcy performance, according to Adamolekun.
  • A 2014 sale‑leaseback left Red Lobster with high rent obligations, even as it plans targeted $500,000 remodels backed by new investor funding and continues menu and service updates that have lifted visits.