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Red Lobster could have a new owner. See all closed Florida locations

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4 months ago

July 25, 2024

Red Lobster could have a new owner. See all closed Florida locations

The cheddar bay biscuits may be right here to remain.

Florida-based seafood chain Pink Lobster may lastly be getting a brand new proprietor, with court docket paperwork detailing RL Purchaser LLC proposing a $376 million bid to accumulate its remaining property.

A stalking horse bidder listed the newly shaped entity to be the chain’s new proprietor, in response to paperwork filed Monday within the Center District of Florida in Orlando. RL Purchaser LLC is organized and managed by Fortress Credit score Company, which Reuters reported has been buying different bankrupt corporations lately, akin to Alamo Drafthouse and Vice Media.

Why did Pink Lobster file for chapter?

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

The corporate filed for Chapter 11 chapter again on Could 19 of this yr. By submitting for Chapter 11 chapter, the corporate would keep open whereas it reorganized funds to repay present debt over time, searching for to proceed with higher monetary footing.

In an organization assertion in Could, a consultant mentioned Pink Lobster “intends to make use of the proceedings to drive operational enhancements, simplify the enterprise via a discount in areas, and pursue a sale of considerably all of its property as a going concern. As a part of these filings, Pink Lobster has entered right into a stalking horse buy settlement pursuant to which Pink Lobster will promote its enterprise to an entity shaped and managed by its present time period lenders.”

USA At the moment reported that paperwork filed in federal court docket later revealed that the chapter was primarily attributable to important debt, a carousel of CEOs, an all-you-can-eat shrimp fiasco and a 30% drop in visitors since 2019.

Pink Lobster abruptly closed practically 100 areas round the nation in Could, together with no less than 17 in Florida,

Who’s Pink Lobster’s new proprietor?

Fortress Funding Group, dad or mum of Fortress Credit score Corp., is an funding administration agency primarily based in New York Metropolis.

In line with Nation Restaurant Information, they’re additionally the proprietor of SPB Hospitality, which owns Krystal, Logan’s Roadhouse, J. Alexander’s, Gordon Biersch Brewery Restaurant, and several other different restaurant manufacturers.

How did RL Purchaser, Fortress Funding Group purchase Pink Lobster?

The favored seafood restaurant chain was initially going to be offered extra historically, however they didn’t obtain any buy bids by the July 18 deadline apart from RL Purchaser so the public sale was canceled and the stalking horse bidder received by default, the Orlando Enterprise Journal reported.

A stalking horse bidder is “an preliminary bid on the property of a bankrupt firm,” in response to Investopedia.

“So, the thought is to … preserve operational continuity and probably scale back the prices and complexities related to a standard asset sale,” legal professional Jeffrey Dutson of King & Spalding LLP, representing Pink Lobster and showing through Zoom throughout the listening to, per the Orlando Enterprise Journal.

The public sale was scheduled for July 23, however with it being canceled, RL Purchaser LLC is now the “profitable bidder.” A listening to is scheduled for July 29 for the approval of the sale of the property, the federal court docket paperwork say.

Who based Pink Lobster? Seafood restaurant chain began in Florida

Pink Lobster was based in 1968 in Lakeland, Florida, by Invoice Darden and Charley Woodsby.

Normal Mills acquired the corporate in 1970 and helped it develop into North America, earlier than establishing a brand new firm for its restaurant manufacturers known as Darden Eating places Inc. in 1995. Darden additionally owned the Italian restaurant chain, Olive Backyard.

Nearly 20 years later, Darden Eating places offered Pink Lobster to Golden Gate Capital in 2014. Thai Union, which beforehand had a one-fourth stake within the firm, purchased out Golden Gate’s stake within the firm in 2020.

This yr, Thai Union Group revealed that it meant to exit its minority funding in Pink Lobster.

“The mix of COVID-19 pandemic, sustained business headwinds, greater rates of interest and rising materials and labor prices have impacted Pink Lobster, leading to extended detrimental monetary contributions to Thai Union and its shareholders,” Thiraphong Chansiri, Thai Union Group’s CEO, mentioned in a information launch.

Pink Lobster introduced in Jonathan Tibus as its new CEO lately, in response to Fox Enterprise.

What number of Pink Lobster eating places in Florida closed this yr?

On the time of the announcement, Pink Lobster pushed again towards any dialogue of restaurant closings, saying that its remaining shops would keep open throughout its chapter proceedings. As of July 2024, the restaurant has closed roughly 100 areas throughout the nation.

After saying its chapter, the corporate closed essentially the most areas in Florida at 17. A search of the Pink Lobster web site had areas in these Florida cities listed as “Closed” beneath its hours for all days of the week: