Red Lobster Considers Closing More Locations as Part of Comeback Effort

CEO says seafood chain is reviewing real estate footprint and leases to cut costs after emerging from bankruptcy in 2024

Published on Feb. 25, 2026

Got story updates? Submit your updates here. ›

Red Lobster, the seafood restaurant chain, is considering closing more of its nearly 550 locations nationwide as part of its ongoing turnaround efforts following its 2024 bankruptcy filing. CEO Damola Adamolekun told The Wall Street Journal that the company is reviewing its real estate footprint and leases in order to cut costs, with the goal of focusing on its best-performing restaurants. While sales have risen about 10% compared to 2025, driven by the introduction of new Seafood Boil menu items, Red Lobster's revenue remains below pre-bankruptcy levels.

Why it matters

Red Lobster's potential closure of more locations highlights the ongoing challenges facing the restaurant industry, even as the chain works to recover from its 2024 bankruptcy. The company's efforts to streamline its operations and focus on its strongest-performing restaurants could serve as a model for other struggling chains looking to regain their financial footing.

The details

Red Lobster filed for Chapter 11 bankruptcy in May 2024 after years of declining traffic and mounting debt, including the financial strain caused by its popular all-you-can-eat shrimp deal. The company emerged from bankruptcy in September 2024 with $70 million in new investments and Adamolekun, a former P.F. Chang's CEO, leading the turnaround. While sales have improved, driven by the introduction of new Seafood Boil menu items, Red Lobster has also laid off dozens of restaurant managers and about 10% of its corporate staff in recent months. The company is also negotiating with vendors as President Donald Trump's tariffs increase the cost of imported seafood.

  • Red Lobster filed for Chapter 11 bankruptcy in May 2024.
  • Red Lobster emerged from bankruptcy in September 2024.
  • Red Lobster's sales have risen about 10% compared to 2025, fueled in part by an 18% jump in visits in July following the debut of its Seafood Boils.

The players

Damola Adamolekun

The CEO of Red Lobster, who is leading the company's turnaround efforts after it emerged from bankruptcy in 2024.

Red Lobster

A seafood restaurant chain based in Orlando, Florida, that filed for Chapter 11 bankruptcy in 2024 and is now working to streamline its operations and focus on its strongest-performing locations.

Got photos? Submit your photos here. ›

What they’re saying

“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.”

— Damola Adamolekun, CEO (The Wall Street Journal)

“I watch the guest scores and the traffic improvement, because that ultimately determines the fate of the business.”

— Damola Adamolekun, CEO (The Wall Street Journal)

What’s next

Red Lobster is considering expanding internationally and increasing its retail presence by selling more Cheddar Bay Biscuit mixes and other foods in stores as part of its turnaround efforts.

The takeaway

Red Lobster's potential closure of more locations highlights the ongoing challenges facing the restaurant industry, even as the chain works to recover from its 2024 bankruptcy. The company's efforts to streamline its operations and focus on its strongest-performing restaurants could serve as a model for other struggling chains looking to regain their financial footing.