Red Lobster Dives Out Of Bankruptcy: What Michigan Can Expect

For many, this is one delicious win, especially for all those Cheddar Biscuit lovers out there.

In a major win for one of America’s favorite seafood chains, Red Lobster has been officially cleared to exit bankruptcy, signaling a fresh start for the restaurant known for its famous Cheddar Bay Biscuits and signature seafood dishes. A U.S. bankruptcy judge approved the company’s reorganization plan, which involves a lender group stepping in to acquire the business.

The welcomed news to fans of the popular restaurant comes just 4 months after the news broke that  Red Lobster filed for bankruptcy protection following years of mounting losses and dwindling customers. As locations started to abruptly close, there were many looking for a reason to blame and went as far as to pin the whole downfall on the 'Endless Shrimp' deal. There may actually be some truth to that believe it or not.

According to a press release from Red Lobster, the acquisition is expected to be completed by the end of the month and will see RL Investor Holdings LLC, which is a newly formed entity organized and controlled by the Fortress Investment Group LLC,  acquire the restaurant chain.

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What does this all mean for the still operating Red Lobsters across the country? According to the press release, the goal is to continue operations of the remaining 544 locations across the U.S. and Canada once they emerge from bankruptcy.

There are currently still 26 Red Lobster locations in Michigan.