Purple Lobster chapter exit plan: New homeowners, new boss, fewer restaurant places

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Purple Lobster has obtained courtroom approval for its Chapter 11 exit plan, nudging the favored casual-dining seafood chain nearer to rising from chapter.

Recognized for its seafood choices and iconic cheddar biscuits, the corporate filed for chapter safety in Could after dealing with a collection of challenges, together with rising competitors, costly leases, and—some could have you imagine—a failed shrimp promotion that compounded current monetary difficulties.

Moreover, the broader pullback in client spending, particularly within the wake of the pandemic, additional strained the corporate’s funds.

Right here’s what might be completely different concerning the restaurant chain as soon as it emerges from chapter:

• New homeowners: Underneath the accepted restructuring plan, RL Investor Holdings, a gaggle of traders that features TCW Personal Credit score, Blue Torch, and funds managed by associates of Fortress Funding Group, will purchase the chain by the tip of the month.
• Fewer places: Purple Lobster will proceed to function independently, albeit with 544 eating places throughout america and Canada, slimmed down from 578 places pre-bankruptcy submitting. The corporate has introduced quite a few closures in courtroom filings for the reason that chapter.
• New boss: As soon as the acquisition is finalized, former P.F. Chang’s CEO Damola Adamolekun will step in to steer Purple Lobster as chief govt, changing Jonathan Tibus, who guided the corporate by its chapter course of.

Adamolekun expressed enthusiasm for the longer term, stating that the brand new possession group is dedicated to reinvigorating the model with over $60 million in new funding. He emphasised that the funding will assist Purple Lobster modernize whereas retaining the important thing components which have made it a beloved identify within the business.

“Purple Lobster’s future is brighter now than ever earlier than. I can not wait to get began on our funding plan, and to get out and meet diners throughout the USA and Canada,” Adamolekun mentioned in a media launch asserting the choice.

This growth comes at a difficult time for the restaurant business, with a number of different chains submitting for chapter this 12 months, fighting excessive rates of interest and post-pandemic shifts in client spending.

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Tracy Brown Hamilton
2024-09-06 12:51:00
Source :https://www.fastcompany.com/91185860/red-lobster-bankruptcy-exit-plan-restaurant-locations-new-owners-ceo