Red Lobster, a US seafood chain, moves closer to a bankruptcy sale with lenders potentially taking control.
Red Lobster, a US seafood chain, is moving closer to a bankruptcy sale that would see its lenders, including Fortress Investment Group, take control of the company. The chain filed for bankruptcy in May after struggling with high inflation, unsustainable rent costs, and poor management decisions. A court-approved auction in August did not receive any qualified bids, leading to the likelihood of the company transferring its equity to its lenders in a debt-cancellation deal and continuing operations with fewer locations.
July 23, 2024
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