It was reported In June that Red Lobster could shut down its Arkansas locations due to its bankruptcy.
Now we have news that could change all that.
Red Lobster has escaped bankruptcy and exited the process. A U.S. bankruptcy judge gave the green light to Red Lobster’s reorganization plan, facilitating an acquisition by Fortress Investment Group, an asset manager leading a group of lenders.
From Bankruptcy To Survival
In May 2024, Red Lobster filed for Chapter 11 bankruptcy. The filing was largely due to financial troubles, notably from an ill-fated “Endless Shrimp” promotion.
By September 16, 2024, Red Lobster successfully exited bankruptcy. This followed a restructuring under Chapter 11 and its acquisition by RL Investor Holdings LLC.
The news of Red Lobster’s bankruptcy exit was shared on X by @unusual_whales, reflecting public interest in the company’s financial recovery.
BREAKING: Red Lobster has exited bankruptcy.
It has exited from Chapter 11 restructuring and the completion of its acquisition by RL Investor Holdings LLC.
— unusual_whales (@unusual_whales) September 16, 2024
The CEO has also released a statement, saying the company is now stronger:
“Red Lobster is now a stronger, more resilient company, and today is the start of a new chapter in our history.”
So if you go out and get delicious garlic biscuits at Red Lobster in Arkansas, be thankful and remember how easily that food could’ve disappeared forever!
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