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New owner nears purchase of seafood chain after closures

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The Red Lobster location in Sanford, Florida, abruptly closed in May as the company filed for Chapter 11 bankruptcy.

Two months after submitting for Chapter 11 chapter, Purple Lobster might quickly be altering arms.

A stalking horse bidder listed as RL Purchaser LLC − a newly shaped entity organized and managed by Fortress Credit score Company − is ready to be the chain’s new proprietor, in response to court docket paperwork filed Monday within the Center District of Florida in Orlando.

RL Purchaser LLC, which consists of Purple Lobster’s lenders, bid $376 million to amass the corporate’s remaining belongings, in response to the Orlando Enterprise Journal.

Purple Lobster filed for chapter on Could 19 after closing dozens of places and asserting that it supposed to “drive operational enhancements” by simplifying the enterprise. Paperwork later filed in federal court docket revealed that the chapter was primarily on account of vital debt, a carousel of CEOs, an all-you-can-eat shrimp fiasco and a 30% drop in friends since 2019.

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