Red Lobster could have renewed lifeline with new buyout proposal

Red Lobster News

Red Lobster could have renewed lifeline with new buyout proposal
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Two months after filing for bankruptcy, Red Lobster is close to emerging with a new owner.

Red Lobster is nearing a deal with Fortress Credit to remain open.

Fortress is one of Red Lobster's largest lenders and has financed the restaurant chain's operations, including a new $100 million loan that allowed Red Lobster to stay afloat during its bankruptcy proceedings. Red Lobster has closed around 100 restaurants in recent months and has said it wants to close several dozen more locations. It has around 600 restaurants remaining.

Under Thai Union's leadership, Red Lobster's culture turned toxic, former leaders told CNN. Red Lobster cut costs, removed longtime suppliers and implemented strategies that backfired, such as making $20 endless shrimp a permanent menu item. Red Lobster lost $11 million on the endless shrimp deal.

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