Red Lobster emerges from bankruptcy under a Fortress Investment Group-led deal, keeping all locations open and securing $60 million to revitalize the brand.
Bollywood Fever: Red Lobster has received court approval for a restructuring plan that will allow the restaurant chain to emerge from bankruptcy under the control of a lender group led by Fortress Investment Group.
The restructuring ensures the company can maintain all 544 current locations and preserve jobs for 30,000 employees.
The Orlando-based seafood chain, which operates across 44 U.S. states and four Canadian provinces, filed for bankruptcy in May after closing 93 locations.
The company sought to address its $300 million debt and find a buyer. However, when no outside bidder emerged, Red Lobster opted to move forward with a debt-cancellation deal with its lenders.
Incoming CEO Damola Adamolekun stated that the new ownership has committed more than $60 million to revitalize the iconic brand. This is a great day for Red Lobster,” Adamolekun said in a statement.
The company reported a $76 million net loss in 2023, attributing its financial troubles to high inflation, unsustainable rent costs, and poor management decisions, including an “endless shrimp” promotion that resulted in $11 million in losses.
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