Red Lobster’s Canadian locations are expected to remain open after the seafood restaurant chain’s U.S. parent exited U.S. Chapter 11 bankruptcy proceedings.

An Ontario judge approved a restructuring plan authorized by a U.S. court after the Florida-based parent filed for bankruptcy in May. At that time, the Ontario court recognized the U.S. legal action, protecting Red Lobster Canada from creditors.

The U.S. parent firm emerged from bankruptcy following a sales process launched by a stalking-horse bid.

As part of the Chapter 11 plan,  RL Investor Holdings LLC agreed to acquire the Red Lobster chain from the company. 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. 

Damola Adamolekun, 35, has been named the parent firm’s new CEO. He will replace Jonathan Tibus, a U.S.-based managing director with restructuring advisory firm Alvarez & Marsal, who has been serving as Red Lobster’s CEO during the court-monitored sale process.

Red Lobster expanded into Canada in 1983. The firm’s Canadian subsidiary has 2,000 mostly part-time and non-unionized Canadian employees, the Canadian Press reported previously.

Red Lobster Canada operates 27 locations in Ontario, Alberta, Saskatchewan and Manitoba.

All but two of the chain’s Canadian properties are leased, while two in Brantford, Ont., and Toronto’s Etobicoke area are owned. The company owns the Etobicoke location’s building, but not the land, according to CP

Photo: Shutterstock