NEW YORK (AP) — After months of dozens of restaurant closings and headlines about “endless shrimp” woes, Red Lobster is poised to soon exit from Chapter 11 bankruptcy protection.
A U.S. bankruptcy judge on Thursday approved the casual seafood chain's reorganization plan and sale to a lender group led by asset manager Fortress. The green light arrives under just four months after Red Lobster filed for bankruptcy protection as it pursued a sale, following years of mounting losses and dwindling customers while it struggled to keep up with competitors.
At the time of filing in May, Red Lobster's leadership shared plans to “simplify the business” through a reduction of locations. The Orlando, Florida, chain shuttered dozens of its North American restaurants in recent months — both leading up to and during the bankruptcy process. That includes more than 50 locations whose equipment was put up for auction just days before the Chapter 11 petition, followed by dozens of additional closures throughout the bankruptcy process.
Red Lobster said Thursday that it expects to operate about 544 locations across the U.S. and Canada upon emerging from bankruptcy. That's down from 578 disclosed as of May’s filing.
Under terms of the acquisition, which is expected to close at the end of September, the chain will continue to operate as an independent company.
The chain will also get a new CEO — Damola Adamolekun, former chief executive of P.F. Chang’s.
Adamolekun was appointed to head RL Investor Holdings, the newly formed entity acquiring Red Lobster, by Fortress last week. In a statement Thursday, Adamolekun said that Red Lobster “has a tremendous future” and thanked Jonathan Tibus, who will leave the company and step down as CEO, for his leadership during the bankruptcy process.
Red Lobster’s purchaser is also providing additional funding to help the Orlando, Florida-based chain get back on its feet post-emergence. Adamolekun said the company’s long-term investment plan includes a commitment of more than $60 million in new funding.
Red Lobster has seen multiple ownership changes over the course of its 56-year history. The chain was founded back in 1968 by Bill Darden, who sold Red Lobster to General Mills in 1970. General Mills later went on to form Darden Restaurants, which owns Olive Garden and other chains. Darden Restaurants was spun off from General Mills in 1995.
Darden Restaurants later sold Red Lobster to a private equity firm in 2014. Thai Union Group, one of the world’s largest seafood suppliers, first invested in Red Lobster in 2016 and upped its stake in 2020 — but announced its intention to exit its minority investment earlier this year.
When announcing plans to divest in January, CEO Thiraphong Chansiri said the COVID-19 pandemic, industry headwinds and rising operating costs from Red Lobster had resulted in “prolonged negative financial contributions to Thai Union and its shareholders.” It reported a $19 million loss from Red Lobster for the first nine months of 2023.
While not the sole reason, among sources of loss were — yes — those endless shrimp. Last year, Red Lobster significantly expanded the iconic all-you-can-eat special. But customer demand overwhelmed what the chain could afford. Thai Union leadership later noted that the deal’s $20 price tag wasn’t making enough money.
FILE - Signage at a Red Lobster restaurant, May 20, 2024, in Lincolnwood, Ill. (AP Photo/Teresa Crawford, File)
MASNAA BORDER CROSSING, Lebanon (AP) — Powerful new explosions rocked Beirut's southern suburbs late Saturday as Israel expanded its bombardment in Lebanon, also striking a Palestinian refugee camp deep in the north for the first time as it targeted both Hezbollah and Hamas fighters.
Thousands of people in Lebanon, including Palestinian refugees, continued to flee the widening conflict in the region, while rallies were held around the world marking the approaching anniversary of the start of the war in Gaza.
The strong explosions began near midnight after Israel's military urged residents to evacuate areas in Beirut's Haret Hreik and Choueifat neighborhoods. AP video showed the blasts illuminating the densely populated southern suburbs, where Hezbollah has a strong presence. They followed a day of sporadic strikes and the nearly continuous buzz of reconnaissance drones.
Israel's military confirmed it was striking targets near Beirut and said about 30 projectiles had crossed from Lebanon into Israeli territory, with some intercepted.
Earlier on Saturday, Israel's attack on the northern Beddawi camp killed an official with Hamas’ military wing along with his wife and two young daughters, the Palestinian militant group said. Hamas later said another military wing member was killed in Israeli strikes in Lebanon’s eastern Bekaa Valley. The aftermath showed smashed buildings, scattered bricks and stairways to nowhere.
Israel has killed several Hamas officials in Lebanon since the Israel-Hamas war began , in addition to most of the top leadership of the Lebanon-based Hezbollah as fighting has sharply escalated.
At least 1,400 Lebanese, including civilians, medics and Hezbollah fighters, have been killed and 1.2 million driven from their homes in less than two weeks. Israel says it aims to drive the militant group away from shared borders so displaced Israelis can return to their homes.
Iranian-backed Hezbollah, the strongest armed force in Lebanon, began firing rockets into Israel almost immediately after Hamas’ Oct. 7 attack, calling it a show of support for the Palestinians. Hezbollah and Israel's military have traded fire almost daily.
Last week, Israel launched what it called a limited ground operation into southern Lebanon after a series of attacks killed longtime Hezbollah leader Hassan Nasrallah and others. The fighting is the worst since Israel and Hezbollah fought a brief war in 2006. Nine Israeli soldiers have been killed in the ground clashes that Israel says have killed 440 Hezbollah fighters.
Iran’s foreign minister, Abbas Araghchi, told reporters in Damascus that “we are trying to reach a cease-fire in Gaza and in Lebanon.” The minister said the unnamed countries putting forward initiatives include regional states and some outside the Middle East.
Araghchi spoke a day after the supreme leader of Iran praised its recent missile strikes on Israel and said it was ready to do it again if necessary.
On Saturday evening, Israeli Prime Minister Benjamin Netanyahu said “Israel has the duty and the right to defend itself and respond to these attacks, and it will do so.” On Lebanon, he said ”we are not done yet."
Israel’s military earlier Saturday said about 90 projectiles were fired from Lebanon into Israeli territory. Most were intercepted, but several fell in the northern Arab town of Deir al-Asad, where police said three people were lightly injured.
At least six people in Lebanon were killed in more than a dozen Israeli airstrikes overnight and into Saturday, according to the Lebanese state-run National News Agency.
Nearly 375,000 people have fled from Lebanon into Syria in less than two weeks, according to a Lebanese government committee.
Associated Press journalists saw hundreds continuing to cross the Masnaa Border Crossing on foot, crunching over the rubble after Israeli airstrikes left huge craters in the road leading to it on Thursday. Much of Hezbollah’s weaponry is believed to come from Iran through Syria.
“We were on the road for two days,” said Issa Hilal, one of many Syrian refugees in Lebanon who are now heading back. “The roads were very crowded … it was very difficult. We almost died getting here." Some children whimpered or cried.
Other displaced families now shelter alongside Beirut’s famous seaside Corniche, their wind-flapped tents just steps from luxury homes. “We don’t care if we die, but we don’t want to die at the hands of Netanyahu,” said Om Ali Mcheik.
The Israeli military said special forces were carrying out ground raids against Hezbollah infrastructure in southern Lebanon. It said troops dismantled tunnel shafts that Hezbollah used to approach the Israeli border.
Almost 42,000 Palestinians have been killed in Gaza during the war, according to the Health Ministry there, which does not differentiate between civilian and militant deaths. Almost 90% of Gaza’s residents are displaced, amid widespread destruction.
Palestinian medical officials said Israeli strikes in northern and central Gaza on Saturday killed at least nine people. One in the northern town of Beit Hanoun killed at least five, including two children, according to Gaza's Health Ministry. Another hit a house in the Nuseirat refugee camp, killing at least four, Awda hospital said.
Israel's military did not have any immediate comment but has long accused Hamas of operating from within civilian areas.
An Israeli airstrike killed two children in Gaza City’s Zaytoun neighborhood, according to the civil defense first responders’ group that operates under the Hamas-run government.
Israel's military warned Palestinians to evacuate along the strategic Netzarim corridor in central Gaza that was at the heart of obstacles to a cease-fire deal. The military told people in parts of the Nuseirat and Bureij refugee camps to evacuate to Muwasi, a coastal area it has designated a humanitarian zone.
It’s unclear how many Palestinians are in those areas. Israeli forces have often returned to areas in Gaza to target Hamas fighters as they regroup.
Mroue reported from Beirut and Lidman from Tel Aviv, Israel.
Find more of AP’s coverage at https://apnews.com/hub/israel-hamas-war
Billboards with a picture of the late Lebanon's Hezbollah leader Sayyed Hassan Nasrallah are displayed on a Beirut airport highway, Saturday, Oct. 5, 2024. (AP Photo/Bilal Hussein)
People take part in a performance during a protest against Israel Prime Minister Benjamin Netanyahu's government and call for the release of hostages held in the Gaza Strip by the Hamas militant group, in Tel Aviv, Israel, Saturday, Oct. 5, 2024. (AP Photo/Ariel Schalit)
A man rides his bicycle next to a billboard with information about upcoming events marking the one-year anniversary of the Oct. 7 Hamas attack on Israel, in Tel Aviv, Israel, on Saturday, Oct. 5, 2024. (AP Photo/Oded Balilty)
Vehicles drive past a billboard showing the late Iranian Revolutionary Guard Gen. Qassem Soleimani, who was killed in Iraq in a U.S. drone attack in 2020, kissing forehead of slain Hezbollah leader Hassan Nasrallah, in Tehran, Iran, Saturday, Oct. 5, 2024. (AP Photo/Vahid Salemi)
People carry their luggage as they cross into Syria on foot, through a crater caused by Israeli airstrikes aiming to block Beirut-Damascus highway at the Masnaa crossing, in the eastern Bekaa Valley, Lebanon, Saturday, Oct. 5, 2024. (AP Photo/Hassan Ammar)
A journalist documents the damaged buildings at the site of an Israeli airstrike, in the village of Temnin, Bekaa Valley, eastern Lebanon, Saturday, Oct. 5, 2024. (AP Photo/Hassan Ammar)
People carry their luggage as they cross into Syria on foot, through a crater caused by Israeli airstrikes aiming to block Beirut-Damascus highway at the Masnaa crossing, in the eastern Bekaa Valley, Lebanon, Saturday, Oct. 5, 2024. (AP Photo/Hassan Ammar)
People carry their luggage as they cross into Syria on foot, through a crater caused by Israeli airstrikes aiming to block Beirut-Damascus highway at the Masnaa crossing, in the eastern Bekaa Valley, Lebanon, Saturday, Oct. 5, 2024. (AP Photo/Hassan Ammar)
People carry their luggage as they cross into Syria on foot, through a crater caused by Israeli airstrikes aiming to block Beirut-Damascus highway at the Masnaa crossing, in the eastern Bekaa Valley, Lebanon, Saturday, Oct. 5, 2024. (AP Photo/Hassan Ammar)
A family cross into Syria on foot, through a crater caused by Israeli airstrikes aiming to block Beirut-Damascus highway at the Masnaa crossing, in the eastern Bekaa Valley, Lebanon, Saturday, Oct. 5, 2024. (AP Photo/Hassan Ammar)
Families cross into Syria on foot, through a crater caused by Israeli airstrikes aiming to block Beirut-Damascus highway at the Masnaa crossing, in the eastern Bekaa Valley, Lebanon, Saturday, Oct. 5, 2024. (AP Photo/Hassan Ammar)
People carry their luggage as they cross into Syria on foot, through a crater caused by Israeli airstrikes aiming to block Beirut-Damascus highway at the Masnaa crossing, in the eastern Bekaa Valley, Lebanon, Saturday, Oct. 5, 2024. (AP Photo/Hassan Ammar)
A girl who was wounded in an Israeli airstrike, lies in Rayak Hospital, in the village of Rayak, Bekaa Valley, eastern Lebanon, Saturday, Oct. 5, 2024. (AP Photo/Hassan Ammar)
People carry their luggage as they cross into Syria on foot, through a crater caused by Israeli airstrikes aiming to block Beirut-Damascus highway at the Masnaa crossing, in the eastern Bekaa Valley, Lebanon, Saturday, Oct. 5, 2024. (AP Photo/Hassan Ammar)
A firefighter works to extinguish a fire after a rocket, fired from Lebanon, hit an area next to a road near Kiryat Shmona, northern Israel, Saturday, Oct. 5, 2024. (AP Photo/Leo Correa)
Smoke rises from a fire in southern Lebanon as seen from northern Israel, Saturday, Oct. 5, 2024. (AP Photo/Leo Correa)
A firefighter works to extinguish a fire after a rocket, fired from Lebanon, hit an area next to a road near Kiryat Shmona, northern Israel, Saturday, Oct. 5, 2024. (AP Photo/Leo Correa)
Israeli Iron Dome air defense system fires to intercept rockets that were launched from Lebanon, in northern Israel, Friday, Oct. 4, 2024. (AP Photo/Leo Correa)
Smoke rises following Israeli bombardment in southern Lebanon as seen from northern Israel, Saturday, Oct. 5, 2024. (AP Photo/Leo Correa)
An Israeli Apache helicopter fires a missile towards southern Lebanon as seen from northern Israel, Friday, Oct. 4, 2024. (AP Photo/Leo Correa)
Smoke rises after Israeli airstrikes in Dahiyeh, Beirut, Lebanon, Saturday, Oct. 5, 2024. (AP Photo/Bilal Hussein)
Smoke rises after Israeli airstrikes in Dahiyeh, Beirut, Lebanon, Saturday, Oct. 5, 2024. (AP Photo/Bilal Hussein)
