Orlando, Florida, U.S.A.-based seafood restaurant chain Red Lobster has canceled an auction to sell its assets scheduled for 23 July, announcing Fortress Credit will be purchasing the company’s assets.
In the auction cancellation notice, filed in U.S. Bankruptcy Court for the Middle District of Florida in Orlando, Red Lobster said that no other entities besides its stalking horse bidder Fortress Credit had submitted bids to buy the company via auction. Fortress’s claims total USD 79.1 billion (EUR 73 million), so the announced sale forms the main portion of Fortress’s recovery of those funds, according to Debtwire.
A hearing on the sale to Fortress will be held on 29 July at the U.S. Bankruptcy Court in Orlando.
“We frankly think it’s a very good development. Fortress has a lot of experience in the restaurant industry. They will be very constructive partners to the vendors, to the landlords, and to the employees,” Brad Sandler, attorney for the Official Committee of Unsecured Creditors in the Red Lobster bankruptcy action, told SeafoodSource.
Red Lobster closed around 100 restaurants in May just after its bankruptcy declaration, and was exploring the closure of up to 120 additional restaurants. However, Red Lobster recently signaled interest in keeping most of its remaining restaurants open. In an effort to ensure as many restaurants stay open as possible, the chain successfully negotiated most of ...
