25 Illinois Red Lobsters May Have Just Been Saved from Bankruptcy

The report of Red Lobster's demise may have been a bit premature after all. It appears that 25 Illinois locations may have just been saved from bankruptcy thanks to a sale in the 11th hour.

According to Scrape Hero and Red Lobster's official site, there are currently 25 restaurants in Illinois. Much speculation was underway about what their fate would be due to bankruptcy reports connected to the chain. Today, Nation's Restaurant News reports that help is on the way in the form of a sale.

The report says "Red Lobster will almost certainly be bought out of bankruptcy by its creditors, led by Fortress Credit Corp." This is based on documentation that was submitted to a bankruptcy court overseeing Red Lobster's affairs on Monday, July 22, 2024.

Red Lobster reportedly had a debt of $375 million dollars and it's creditor RL Purchaser LLC will take control of the franchise in exchange for that debt. There still has to be an approval vote in court for that sale and it will happen on July 29, 2024 based on Nation's Restaurant News story.

It would appear that Red Lobster locations in Illinois and other parts of the country may have been given a reprieve from restaurant closings, but it will be interesting to see what new direction and strategies the new owners will have. Let's hope that Red Lobster and its many employees get a happy ending after all.