(Bloomberg) -- Fortress Investment Group is closer to acquiring Red Lobster after the bankrupt seafood chain failed to net better offers for its business.
Red Lobster said in a Monday court filing that it didn’t receive any other qualified bids before a court-approved deadline and would instead take an existing offer from Fortress. The sale must be approved by a bankruptcy judge, though other Red Lobster creditors have previously said they support the transaction.
Red Lobster filed Chapter 11 in May after struggling for years with costly leases and declining sales. The company has said it is also investigating potential claims against its largest owner, Thai Union Group Plc, over its money-losing “Ultimate Endless Shrimp” promotion.
Fortress is a major creditor of Red Lobster and, along with other lenders, has funded the restaurant chain’s Chapter 11 case with $100 million of new debt. The sale is in the form of a credit bid, meaning Fortress will forgive the bankruptcy financing in exchange for the seafood chain, according to court documents.
Red Lobster said last month that it wants to speed-up its exit from Chapter 11 after striking a deal with a key creditor group and Fortress on the terms of its restructuring.
Fortress declined to comment.
A Florida bankruptcy judge will consider approving the sale on July 29.
The case is Red Lobster Management LLC, number 24-02486, in the US Bankruptcy Court for the Middle District of Florida (Orlando).
(Corrects Red Lobster ownership in paragraph three. Adds Fortress response to comment request.)
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