Red Lobster

Hilco Corporate Finance Announces Sale of Red Lobster

Hilco Corporate Finance (HCF) is pleased to announce the sale, in a chapter 11 bankruptcy reorganization, of Red Lobster Management, LLC, to a consortium of lenders led by Fortress Investment Group.

Red Lobster is the nation’s largest seafood restaurant and one of the largest casual dining chains in the United States, with a history spanning seven decades. With approximately 600 worldwide locations, Red Lobster is renowned for providing guests with an exceptional dining experience featuring quality seafood, friendly service, and a vibrant and inviting seaside-inspired atmosphere. It has a dominant position in its market, serving over 64 million customers per year, operating more than half of all seafood casual dining locations in the country, and purchasing 20% of all Maine lobster tails sold in the world.

Coming out of the COVID downturn, Red Lobster faced many challenges, including inflationary pressures, unfavorable leases and underperforming locations within its portfolio, and marketing and operational missteps. Red Lobster engaged HCF in March 2024 to execute a sale process to maximize the value of the enterprise.

Red Lobster filed for bankruptcy protection on May 19, 2024. HCF ran a broad marketing process to facilitate a section 363 sale, contacting over 240 parties during its efforts. The business was ultimately sold to a group led by Fortress Investment Group for $275 million.

HCF, a boutique investment banking advisor affiliated with Hilco Global, provides unmatched creativity and relentless support to its clients. HCF’s seasoned team of professionals specializes in comprehensive advisory services to private and public companies, private equity groups, family offices, and entrepreneurs. Hilco Global is a diversified financial service company with 20+ highly specialized business units and 800+ professionals across five continents globally.

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Securities Transaction Services are provided by Hilco Corporate Finance, LLC, a registered broker-dealer and member of FINRA/SIPC