Red Lobster to get new owner after bankruptcy woes

Over two months after Red Lobster filed for bankruptcy, the seafood restaurant chain could soon have a new owner, according to USA Today.

RL Purchaser, a stalking horse bidder — a firm that puts the first bid on a bankrupt company’s assets to establish a low-end bid — is set to take over the chain, USA Today reports.

Court documents filed in the Middle District of Florida in Orlando on Monday indicate the change of ownership. RL Purchaser consists of Red Lobster’s lenders, and it reportedly acquired the chain’s remaining assets for a bid of $376 million.

Red Lobster filed for Chapter 11 bankruptcy back in May, leading to restaurant closures across Central Florida. The bankruptcy was in large part sparked by unstable leadership, an Ultimate Endless Shrimp deal, and a huge drop in customers in recent years.

Investment firm Fortress Credit Corporation is responsible for controlling RL Purchaser, though Red Lobster wouldn’t be the first of Fortress’ acquisitions. Other bankrupt companies, such as Vice Media and Alamo Drafthouse, were also acquired by Fortress (though Alamo Drafthouse was later sold to Sony).

The purchase (which RL Purchaser won by default) could give Red Lobster the ability to reorganize and amend some of its operational problems, though no information has been provided at this time about whether CEO Jonathan Tibus will remain in his role.

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