Red Lobster finally has a new owner

Red Lobster is finally getting a new owner.

The world’s largest seafood chain is likely going to be acquired by Fortress Investment Group. Despite Red Lobster being bankrupt and looking for better offers, it did not receive any other competitive bids before the court’s deadline, according to a court filing made on Monday.

As a result, Red Lobster has decided to accept Fortress’ existing offer. The sale requires a bankruptcy judge’s approval even though the chain’s creditors have indicated their support for the transaction in the past.

In May, Red Lobster filed for Chapter 11 bankruptcy protection as it looked to “make changes” to its business, in part because of a failed lease-back agreement and its “endless shrimp” promotion, which hurt the chain’s revenues.

That same month, the Florida-based company said that it would be shutting about 50 locations after bankruptcy rumors emerged. Meanwhile, its liquidator, TAGeX Brands, said it would auction whatever was inside, including equipment, of the abandoned stores to the highest bidder.

Red Lobster pushed back at the time and said that its remaining stores would stay open during its bankruptcy proceedings and that other big companies like Delta and Hertz had “used the same process to protect their futures.”

But even so, the chain and its “all you can eat shrimp” deal couldn’t keep its current owner, Thai Union Group, from wanting to sell its remaining stake (of $500 million) by the end of 2024.

Fortress is planning to acquire Red Lobster via a credit bid, which means that the group’s bankruptcy funding will be forgiven in exchange for the seafood chain, the court filing shows.

A Florida judge is expected consider approval of the sale on July 29, the filing noted.