Why Even More Red Lobster Locations May Close Their Doors

According to an exclusive interview with The Wall Street Journal published on February 10, 2026, Red Lobster CEO Damola Adamolekun plans to make the seafood restaurant chain even smaller in the coming year. Adamolekun told the Journal that he is "reviewing restaurant leases, and streamlining operations to speed turnaround," and that part of that process is closing even more Red Lobster locations. The seafood chain closed more than 100 restaurants across 28 states in 2024.

Now, its troubles appear to be continuing. Despite the fact that many consumers are tightening their budgets due to inflation and tariff worries, Red Lobster has actually seen higher-than-usual traffic in restaurants. Adamolekun told the Journal that "sales have increased by around 10% from last year," but that the restaurant is still recovering after being rescued from bankruptcy in 2024 by Adamolekun, who is the former CEO of P.F. Chang's.

The company has also laid off its managers and corporate staff and is trying to negotiate import fees with its seafood vendors. Under Adamolekun's leadership, the brand has pulled off a successful redesign, which included a new menu and more modern marketing campaigns. Like Target, Red Lobster has also issued a new corporate directive requiring staff to acknowledge customers who are within 10 feet and verbally greet them if they are four feet or closer.

Since Red Lobster was founded in 1968, it has undergone numerous ownership changes, including an ill-fated 2014 purchase by private-equity firm Golden Gate Capital, which resulted in a real estate deal that cost the company $200 million per year in rent, one of the main reasons Red Lobster went bankrupt. After being sold to Thai Union Group in 2020, the company faced further financial challenges brought on by corporate mismanagement and inflation.

Unfortunately, despite aggressive efforts on behalf of the corporation, it was unable to recover successfully. Like many other restaurants facing low sales post-pandemic, Red Lobster filed for bankruptcy in May of 2024 after losses of $76 million in 2023. According to Adamolekun, who gained plenty of corporate experience as the CEO of P.F. Chang's, he "inherited a very damaged brand, so there's still work to do to repair all of that" (via The Wall Street Journal). He insists that the company needs "big upgrades" to return to "prebankruptcy levels," and it appears that menu changes and marketing are not enough. At the time that Red Lobster filed for Chapter 11 bankruptcy, it listed hundreds of millions of dollars in debt.

Adamolekun's plan for fixing this is to better manage the chain's more than 500 restaurants and renegotiate some complicated leases for its properties. He is also considering international Red Lobster franchises and retail branding opportunities. Additionally, despite an initial $70 million investment from RL Investor Holdings to bail the company out of bankruptcy, investors will also need to shell out millions more to cover restaurant remodels.