RL Purchaser, an entity backed by Fortress Investment Group, is one step away from acquiring Red Lobster.

RL Purchaser’s offer was the only competitive one for Red Lobster’s assets submitted by the bid deadline, Bloomberg reported. A bankruptcy hearing to approve the sale is scheduled for Monday in Florida.

Fortress is a large creditor of Red Lobster and has provided $100M in bankruptcy financing to the company. Its $376M credit bid for the chain’s assets reflects money the chain owes in loans outstanding, interest and other expenses accrued, such as financing for the bankruptcy proceedings.

Fortress declined to comment to Bisnow.

The seafood restaurant chain filed for Chapter 11 bankruptcy protection in May.

The investor has an existing portfolio of restaurants, including CraftWorks Restaurants and Breweries, which it acquired during the pandemic through a group it formed called SPB Hospitality. It kept locations operational and went on to acquire more restaurants for the SPB group, the Orlando Business Journal reported.

There will be challenges for Fortress. Part of what has contributed to the chain’s downfall has been pricey leases, in combination with sluggish sales. Attempts to renegotiate leases have run up against landlords, some of which have pushed back against the payment amounts Red Lobster has proposed in an attempt to cure its debts, the OBJ reported.

Red Lobster is one of many family sit-down restaurants, including Applebee's and TGI Fridays, that once dominated the landscape but have since been hit hard by changing consumer desires around eateries.