'A great day for Red Lobster' as company exiting bankruptcy and restaurant plan rolled out

The beloved seafood restaurant Red Lobster is reportedly coming out of Chapter 11 bankruptcy.

On Thursday a federal judge approved Red Lobster’s plan of action to bounce back from their “endless shrimp” fiasco which put them into a huge debt, and led to many location closures. Restaurant closures resulted in an overall decline in guests. RL Investor Holdings LLC, a newly formed company that is organized and controlled by Fortress Investment Group LLC, is involved in Red Lobster’s Chapter 11 plan that has the brand exiting bankruptcy.

RL Investor Holdings LLC is going to acquire Red Lobster and the acquisition should be finished at the end of September, per Red Lobster’s news release.

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Fortress taking on Red Lobster is one of the company’s most recent acquisitions of business that filed for bankruptcy. It comes in the wake of Fortress’ purchases of Vice Media and the Alamo Drafthouse, which have now been sold to Sony Pictures Entertainment.

Fortress spokesperson Gordon Runté said that the company has a “lot of experience” in running restaurant chains since it also controls a company called SPB Hospitality. SPB Hospitality owns brands including Logan's Roadhouse, Krystal, Old Chicago Pizza & Taproom and Twisted Tenders.

"It's definitely an area where we have a lot of experience," Runté told USA Today regarding acquiring another restaurant. "Red Lobster is a big undertaking, it is 500-plus locations, but we're excited about the prospects for the restaurant."

After the acquisition is done, former P.F. Chang’s CEO Damola Adamolekun will be the new CEO of the Red Lobster restaurant chain, succeeding Red Lobster chain CEO Jonathan Tibus. When it’s all said and done, Jonathan will step down from the role and leave the company.

Damola noted that it was a "great day" for Red Lobster given the "new backers" and a new thorough investment plan that encompasses a "commitment of more than $60million in new funding." This in turn will revamp the brand, but still maintaining the "best of its history".

The court’s approval allows Red Lobster to continue to operate as an independent company as well as maintain 544 locations spread throughout 44 U.S. States and four Canadian provinces.

"I'm proud of what Red Lobster has achieved during this restructuring – the Company will emerge from Chapter 11 stronger financially and operationally, and with new backers who are resolutely focused on investment and growth," Jonathan said in a release.