TCW Private Credit Fund Slashes Red Lobster Equity Value by 98%

TCW Group has marked down its equity stake in Red Lobster by roughly 98% since acquiring it via the restaurant’s 2024 bankruptcy, leaving shares held by a private credit fund it oversees now worth less than $1 million, according to a recent regulatory filing.

The asset manager ended up owning a significant chunk of the company after the restructuring converted loans provided by TCW and other lenders into shares. Previously valued at about $31 million, the fund’s stake has been written down for five straight quarters to just $761,628 filings show.

Red Lobster

Photographer: Luke Sharrett/Bloomberg

While the equity has been largely wiped ...