Red Lobster to get new owner after bankruptcy woes

Over two months after Pink Lobster filed for chapter, the seafood restaurant chain might quickly have a brand new proprietor, in response to USA At the moment.

RL Purchaser, a stalking horse bidder — a agency that places the primary bid on a bankrupt firm’s belongings to determine a low-end bid — is ready to take over the chain, USA At the moment experiences.

Court docket paperwork filed within the Center District of Florida in Orlando on Monday point out the change of possession. RL Purchaser consists of Pink Lobster’s lenders, and it reportedly acquired the chain’s remaining belongings for a bid of $376 million.

Pink Lobster filed for Chapter 11 chapter again in Could, resulting in restaurant closures throughout Central Florida. The chapter was largely sparked by unstable management, an Final Countless Shrimp deal, and an enormous drop in clients lately.

Funding agency Fortress Credit score Company is accountable for controlling RL Purchaser, although Pink Lobster wouldn’t be the primary of Fortress’ acquisitions. Different bankrupt corporations, equivalent to Vice Media and Alamo Drafthouse, had been additionally acquired by Fortress (although Alamo Drafthouse was later bought to Sony).

The acquisition (which RL Purchaser gained by default) might give Pink Lobster the flexibility to reorganize and amend a few of its operational issues, although no info has been offered right now about whether or not CEO Jonathan Tibus will stay in his position.

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