Beloved Seafood restaurant chain could soon have a new owner, two months after bankruptcy

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It looks like Red Lobster might be on the verge of a fresh start. After filing for Chapter 11 bankruptcy back in May, the beloved seafood chain is about to change hands, and it seems like things are moving fast.

According to USA Today, RL Purchaser—a stalking horse bidder—will likely become Red Lobster's new owner. What’s a stalking horse bidder, you ask? It's essentially the first company to put in a bid on a bankrupt business’s assets, setting the bar for any other potential offers. In this case, RL Purchaser, which is made up of Red Lobster’s lenders, placed a bid of $376 million to take over the chain’s remaining assets.

The bankruptcy, which led to several restaurant closures in Central Florida, was triggered by a mix of unstable leadership, the pricey Ultimate Endless Shrimp deal, and a significant drop in customer visits. Fortress Credit Corporation, the investment firm behind RL Purchaser, has a history of snapping up bankrupt companies, including Vice Media and Alamo Drafthouse (although Alamo Drafthouse was later sold to Sony).

While Red Lobster’s future looks promising with this new ownership, there’s still some uncertainty. The details about potential changes in leadership, including whether CEO Jonathan Tibus will keep his role, haven’t been revealed yet. But one thing’s for sure: this move could give Red Lobster a chance to address its operational issues and potentially come out stronger on the other side.

Stay tuned for more updates on how this transition might affect your favorite seafood spot!