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Red Lobster Closes El Paso Location After Bankruptcy Restructuring
The popular seafood chain shutters another restaurant as it continues nationwide restructuring efforts.
Mar. 23, 2026 at 10:49am
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Red Lobster has permanently closed its location by the Cielo Vista Mall in El Paso, Texas, leaving just two remaining Red Lobster restaurants in the city. The closure comes after the company filed for Chapter 11 bankruptcy in 2024 and emerged with a restructuring plan that included closing underperforming locations. Red Lobster's new CEO, Damola Adamolekun, has made some changes to the chain, including removing the endless shrimp menu item and remodeling certain locations, which has helped increase sales by an estimated 10% from last year.
Why it matters
The closure of the Red Lobster location is part of the company's broader efforts to restructure and improve its financial standing after emerging from bankruptcy. The loss of a popular dining option in El Paso reflects the ongoing challenges facing the full-service restaurant industry, which has seen declines in foot traffic during the pandemic.
The details
Red Lobster filed for Chapter 11 bankruptcy in Florida in 2024 and emerged in September of that year with a restructuring plan that included more than $60 million in funding from RL Investor Holdings, a company formed by Fortress Investment Group. As part of the restructuring, Red Lobster has been closing underperforming locations, including the one by the Cielo Vista Mall in El Paso. The company's new CEO, Damola Adamolekun, has made some changes to the chain, including changing the music, putting out table linens, and removing the endless shrimp menu item, which has helped increase sales by an estimated 10% from last year.
- Red Lobster filed for Chapter 11 bankruptcy in Florida in 2024.
- Red Lobster emerged from bankruptcy in September 2024 with a restructuring plan.
- The Red Lobster location by the Cielo Vista Mall in El Paso, Texas permanently closed on March 23, 2026.
The players
Red Lobster
A popular seafood restaurant chain that filed for Chapter 11 bankruptcy in 2024 and has been undergoing a nationwide restructuring effort, including closing underperforming locations.
Damola Adamolekun
The new chief executive of Red Lobster, who was previously the CEO of P.F. Chang's. Adamolekun has made changes to the chain, including removing the endless shrimp menu item and remodeling certain locations, which has helped increase sales.
RL Investor Holdings
A company formed by Fortress Investment Group that provided more than $60 million in funding to Red Lobster as part of the company's restructuring plan after emerging from bankruptcy.
What they’re saying
“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”
— Gordon Edgar, grocery employee
The takeaway
The closure of the Red Lobster location in El Paso is a reflection of the ongoing challenges facing the full-service restaurant industry, which has seen declines in foot traffic during the pandemic. However, Red Lobster's restructuring efforts, including changes made by its new CEO, have helped increase sales at some locations, suggesting the company is working to adapt to the changing market conditions.
