Red Lobster is evaluating additional restaurant closures as part of a broader effort to restructure following its bankruptcy in May 2024.

CEO Damola Adamolekun told The Wall Street Journal that sales have risen about 10% over the past year, but the chain has not returned to pre-bankruptcy levels. Many locations still require upgrades, and the company is reviewing leases to reduce costs.

“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,” Adamolekun said.

The chain shuttered roughly 130 restaurants during the bankruptcy process, which followed steep losses driven in part by a discounted “endless shrimp” promotion and prior financial mismanagement. Red Lobster also faces challenges from a 2014 sale of its real estate, which created complex lease obligations linking high-performing locations with underperforming ones, limiting closure options.

Sources told the Journal that the company aims to reduce its portfolio to focus on higher-performing locations. Adamolekun, hired in August 2024 after leading a restructuring at P.F. Chang’s, has also cut roughly 10% of corporate staff and is negotiating with seafood suppliers amid rising import costs from tariffs.

Looking ahead, Adamolekun said Red Lobster may expand into upstate New York and New England, pursue international franchise deals, and increase retail sales of Red Lobster-branded products, including Cheddar Bay Biscuit mixes.