Red Lobster Cleared to Exit Bankruptcy Under New Owner Fortress

Red Lobster Management won court approval to leave bankruptcy under new ownership led by Fortress Investment Group, giving the iconic seafood chain a chance at revival after filing Chapter 11 about three months ago.

US Bankruptcy Judge Grace Robson said Thursday she’d approve Red Lobster’s restructuring plan and sale of the business to Fortress and other lenders. Red Lobster has closed some poorly performing locations but will leave Chapter 11 with roughly 545 restaurants in the US and Canada and more than 30,000 full- and part-time employees.

Fortress and other lenders acquiring Red Lobster are forgiving company debt and ...