Chapter 11 bankruptcy for Red Lobster has been lifted.

• After court approval, Red Lobster is now one step closer to exiting Chapter 11 bankruptcy through restructuring.
• By the end of the month, Red Lobster will be acquired by a group of investors known as RL Investor Holdings.
• At least nine other restaurant chains have filed for bankruptcy this year.

In May, the company, renowned for its seafood dishes and cheddar biscuits, sought bankruptcy protection due to various challenges such as intense competition, high rental costs, a failed shrimp promotion last year, and a general decline in consumer spending.

Red Lobster will be acquired by RL Investor Holdings by the end of the month, with former P.F. Chang's CEO Damola Adamolekun taking over as CEO. Current CEO Jonathan Tibus will depart from the company.

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TCW Private Credit, Blue Torch, and funds managed by affiliates of Fortress Investment Group are part of RL Investor Holdings. Red Lobster will operate as a separate entity.

The chain now operates 544 restaurants in the U.S. and Canada after reducing its restaurant portfolio.