Remember how we all shed a tear over the uncertain future of cheddar bay biscuits at Red Lobster last month?

There is now hope the seafood chain might not be hit as hard as initially thought by its recent bankruptcy filing.

How Red Lobster Ended Up Filing For Bankruptcy

Rumblings of a potential Red Lobster bankruptcy filing first surfaced in mid-April when Bloomberg reported the chain's parent company was mulling it as an option to combat murky financial waters.

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Reports about why the company was considering bankruptcy varied from a failed endless shrimp promotion to pricy leases on existing restaurant locations. Bloomberg leaned toward the latter in initial reports saying a Red Lobster debt restructuring would possibly allow the company to renegotiate the leases while offsetting increased labor costs.

Red Lobster Files For Bankruptcy Protection
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About a month later, Red Lobster announced it had filed for Chapter 11 bankruptcy.

"The company intends to use the proceedings to drive operational improvements, simplify business through a reduction in locations and pursue a sale of substantially all of its assets as a going concern," a company press release stated.

Some, but not all, Red Lobster locations closed in the days after the filing.

Could Red Lobster Be Saved?

There is a hope for Red Lobster fans as the seafood chain could see a second life after all.

Both the New York Post and Bloomberg are reporting the Wall Street investment firm Fortress Investment Group is currently trying to figure out where Red Lobster went wrong. The New York Post noted the firm "specializes in rehabilitating distressed businesses."

Red Lobster Files For Bankruptcy Protection
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Rehabilitation, however, isn't necessarily guaranteed. In March, Defector covered Fortress Investment Group's involvement in the world of media. The website most notably called out layoffs at Vice and Gatehouse Media, a former Fortress property.

Maybe they can at least save those cheddar bay biscuits.

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