It seems that the previous reports about Red Lobster’s downfall were not entirely accurate as 25 of its locations in Illinois have been rescued from bankruptcy. This fortunate turn of events is attributed to a last-minute sale.
Scrape Hero and Red Lobster’s official website confirm that there are currently 25 restaurants operating in Illinois. With the chain’s bankruptcy reports, there was much speculation about the future of these restaurants. However, according to Nation’s Restaurant News, the restaurants’ fate is looking brighter as a sale is in progress.
According to the report, Red Lobster is likely to be purchased out of bankruptcy by its creditors, who are headed by Fortress Credit Corp. The information was obtained from the documents submitted to the bankruptcy court responsible for overseeing Red Lobster’s affairs on July 22, 2024.
According to a report from Nation’s Restaurant News, Red Lobster was said to owe a staggering $375 million in debt to its creditor RL Purchaser LLC. As per the agreement, the said creditor will take over the franchise in exchange for the debt. However, the sale is still pending court approval, which is set to take place on July 29, 2024.
Red Lobster locations in Illinois and other parts of the country may have been saved from the recent wave of restaurant closings. However, it remains to be seen what the new owners have in store for the seafood chain. One can only hope that Red Lobster and its dedicated employees can look forward to a bright future.