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Flagstaff's Red Lobster remains in limbo as chain nears new ownership

Flagstaff Red Lobster

The Red Lobster in Flagstaff on South Beulah Boulevard.

The future of Red Lobster locations across the country, including locally in Flagstaff, appears to be in the hands of a new owner.

RL Purchaser LLC, controlled by Red Lobster’s largest creditor Fortress Credit Corp., is expected to gain control of the company in exchange for the debt it’s owed, according to a document filed last week in U.S. Bankruptcy Court. A notice of cancellation of auction and designation of successful bidder was filed on July 22, but the sale hearing was continued from July 29 to Sept. 5.





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