Red Lobster’s restructuring plan has received the approval of the Superior Court of Justice in Canada and will move out of bankruptcy as a result. This follows the approval of a U.S. bankruptcy court which was contingent on the Canadian court’s approval.
The plan will see all 27 Canadian restaurants remain open. This will bring the total number of restaurants to 544, down from 578 when bankruptcy was filed in May of this year.
A lender group headed by asset manager Fortress will acquire the business and a new CEO will be assigned thanks to more than $60 million USD in new funding. The acquisition is expected to close by the end of September and will enable the seafood restaurant chain to continue operating as an independent entity.
