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)
NEW YORK (AP) — An apparent attempt to assassinate former President Donald Trump as he played golf in Florida has rocked a presidential campaign already marred by violence and raised questions about how such a thing could have happened for the second time in as many months.
U.S. Secret Service agents opened fire Sunday afternoon on a man who was spotted pointing an AK-style rifle through a fence while hiding in the bushes as Trump golfed at his club in West Palm Beach. The FBI described it as an apparent attempted assassination on the GOP nominee.
At a Pennsylvania rally in July, Trump was grazed in the ear by a bullet when a gunman was able to gain access to an unsecured roof, unleashing a hail of bullets that left one of Trump's supporters dead and two others badly injured.
While the Secret Service has grappled with how to keep Trump safe as he campaigns across the country, holding rallies that often draw thousands, less attention has focused on his protection when he is off the trail, often at his own clubs and properties.
The fact that there are places along the perimeter of the property where golfers — including Trump — are visible to those standing behind the fence has long been known to law enforcement. While Trump was president, news photographers were often able to capture images of him on the greens by finding gaps in the shrubbery.
While Trump’s plans to golf Sunday were not part of any public schedule, on days he is not campaigning, he can often be found golfing at one of his courses. Trump International Golf Club, West Palm Beach, about a 10-minute drive from his Mar-a-Lago residence, is a favorite. One of three golf clubs he owns in Florida, it boasts 27 holes of championship golf, as well as event spaces. Trump often eats lunch and holds meetings in the clubhouse between rounds.
Trump had just returned from a West Coast swing that included stops in Las Vegas and Utah, and had announced on social media that he would be delivering remarks Monday from Mar-a-Lago about cryptocurrency as he launches a new crypto platform.
Palm Beach County Sheriff Ric Bradshaw noted at a briefing that because Trump is no longer in office, security protocols around the course had loosened.
“He's not the sitting president. If he was, we would have had this entire golf course surrounded. But because he's not, his security is limited to the areas that the Secret Service deems possible," he told reporters.
Law enforcement officials praised the work of the agents assigned to protect Trump. One agent, tasked with jumping one hole ahead of the former president to scope out potential threats, managed to spot the gunman's rifle barrel sticking out of the fence that surrounds the golf club and “immediately engaged that individual,” Bradshaw said.
In an email to campaign staff Sunday night, senior campaign advisers Chris LaCivita and Susie Wiles credited the Secret Service for saving Trump, who has praised the agents in his own protective detail for their bravery as they rushed on stage to protect him in Butler, Pennsylvania.
"President Trump and everyone accompanying him are safe thanks to the great work of the United States Secret Service,” they wrote.
Unlike other past presidents and typical VIPs who live in private residences with tall fences or in gated communities, Trump has his official residence at his Mar-a-Lago club in Palm Beach. The club is open to dues-paying members, who mingle with the former president at meals and at events and can invite their own guests to the property.
Many nights, Trump holds court on the club's patio, playing DJ with his iPad. While president, he once plotted a response to a North Korean missile launch from the candlelit terrace, the meeting captured and posted on social media by a club member.
The club is also a popular Palm Beach venue and hosts a constant stream of fundraisers, weddings and other events that sometimes see Trump drop by unannounced.
Secret Service spokesperson Anthony Guglielmi said in a social media post that the agency is working closely with the FBI, Palm Beach County Sheriff’s Office and other law enforcement to investigate what happened.
Trump will be briefed in person Monday by acting Secret Service director Ronald Rowe about the investigation, according to a person familiar with the plan who was not authorized to speak publicly.
The incident sparked immediate finger-pointing and calls for answers on Capitol Hill.
New York Rep. Elise Stefanik, the House Republican Conference chair and a close ally of the former president, said she was grateful Trump was safe. “However, we must ask ourselves how an assassin was allowed to get this close to President Trump again?” she asked in a statement.
The leaders of the bipartisan task force that has been investigating the security failures in Pennsylvania said they were monitoring the situation and had requested a briefing from the Secret Service.
“We are thankful that the former President was not harmed, but remain deeply concerned about political violence and condemn it in all of its forms,” said Rep. Mike Kelly, R-Pa., and Rep. Jason Crow, D-Colo., in a joint statement.
Meanwhile, Florida Gov. Ron DeSantis, one of Trump's rivals in the GOP primary, said his state will conduct its own investigation.
“The people deserve the truth about the would be assassin and how he was able to get within 500 yards of the former president and current GOP nominee,” he wrote in a social media post.
Democratic Rep. Ro Khanna echoed that message. “Two assassination attempts in 60 days on a former President & the Republican nominee is unacceptable," he wrote. "The Secret Service must come to Congress tomorrow, tell us what resources are needed to expand the protective perimeter, & lets allocate it in a bipartisan vote the same day.”
President Joe Biden said in a statement that he was “relieved” that Trump was unharmed and said “there is no place for political violence or for any violence ever in our country.” He said he had directed his staff “to continue to ensure that Secret Service has every resource, capability and protective measure necessary to ensure the former President’s continued safety.”
Associated Press writer Michelle L. Price in New York contributed to this report.
Photos that show an AK-47 rifle, a backpack and a Go-Pro camera on a fence outside Trump International Golf Club taken after an apparent assassination attempt of Republican presidential candidate former President Donald Trump, are displayed during a news conference at the Palm Beach County Main Library, Sunday. Sept. 15, 2024, in West Palm Beach, Fla. (AP Photo/Stephany Matat)
This photo provided by the Martin County Sheriff's Office shows Sheriff's vehicles surrounding an SUV on the northbound I-95 in Martin County on Sunday, Sept. 15, 2024. (Martin County Sheriff's Office via AP)
The main entrance of Trump International Golf Club is seen after police closed off the area following the apparent assassination attempt of Republican presidential nominee former President Donald Trump in West Palm Beach, Fla., Sunday, Sept. 15, 2024. (AP Photo/Terry Renna)
Republican presidential nominee former President Donald Trump speaks during a campaign event at the World Market Center, Friday, Sept.13, 2024, in Las Vegas. (AP Photo/Alex Brandon)
