According to a report, a Wall Street investment firm co-founded by billionaire Milwaukee Bucks co-owner Wesley Edens might step in to rescue Red Lobster from bankruptcy.
Fortress Investment Group, a $48 billion private equity firm specializing in reviving distressed businesses, is the leading candidate to take over the struggling casual dining chain as it seeks to emerge from Chapter 11, Bloomberg News reported.
Executives at Fortress, which was founded by Edens, Rob Kauffman, and Randal Nardone, are currently examining Red Lobster’s financial records to determine the reasons behind the restaurant’s struggles, Bloomberg News stated.
Fortress, which already holds a significant portion of Red Lobster’s debt, is reportedly devising a strategy to revive the restaurant chain by identifying the most promising regions and demographics for a resurgence in popularity.
Although Edens is no longer co-chair of Fortress, the firm is particularly focused on eliminating Red Lobster’s burdensome lease agreements that have severely impacted its profitability, according to Bloomberg News.
The Post has reached out to Fortress and Red Lobster for comment.
Wesley Edens is the father of internet personality Mallory Edens, who has been reportedly linked romantically with New York Jets quarterback Aaron Rodgers.
Last month, Red Lobster, which once operated 550 locations, filed for Chapter 11 bankruptcy protection after closing 93 restaurants.
Court filings indicated that the chain risks closing an additional 135 restaurants if it cannot renegotiate its lease terms.
Wesley Edens is also co-owner of the NBA’s Milwaukee Bucks, featuring superstar forward Giannis Antetokounmpo.
Court filings indicate that Red Lobster has identified 228 leases as unprofitable unless adjustments are made, according to Restaurant Business.
Following its bankruptcy filing, The Post reported that Red Lobster was striving to keep its Times Square location open. The landlords of 5 Times Square, SL Green and RXR, are seeking to double the restaurant’s rent from just under $1 million to $2.2 million annually, as per real estate brokers who spoke to The Post.
Red Lobster had offered a $20 endless shrimp dish as a limited-time promotion. Former CEO Paul Kenny made it a permanent option in May 2023, despite “significant pushback” from other management team members, leading to major shrimp shortages at some locations. Concurrently, Red Lobster eliminated two breaded shrimp suppliers, giving Thai Union an exclusive deal that increased costs, current CEO Jonathan Tibus wrote in the filing. Tibus noted that “Thai Union exercised an outsized influence on the company’s shrimp purchasing,” and that the circumstances around these decisions are under investigation.
With $294 million in debt, Red Lobster plans to close some underperforming restaurants and sell the rest to a group of its lenders, including Fortress Investment Group.
Red Lobster, based in Orlando, Florida, is one of the world’s largest seafood restaurant chains with 54 outlets outside the United States and about 36,000 employees. The documents showed it purchases 20% of all North American lobster tails and 16% of all rock lobsters sold worldwide.
Wesley Edens is the father of internet personality Mallory Edens, who has been linked romantically with New York Jets quarterback Aaron Rodgers. Edens was rumored to be dating Rodgers, seen with Green Bay Packers teammate Randall Cobb.
