Darden Restaurants has filed for a spinoff of Red Lobster, The Orlando Sentinel reports.
If the spinoff goes through, Darden shareholders would get a share of the new Red Lobster company for each Darden share. Former Red Lobster president Kim Lopdrup would be the chain's CEO.
Orlando-based Darden is still exploring the sale of Red Lobster, according to the newspaper.
Activist hedge fund firm Starboard Value has long urged Darden to delay spinning off Red Lobster. Recently, the restaurant operator canceled a meeting with investors and analysts that was scheduled for later this month.
(Read more: Investor to Darden:Keep Red Lobster!)
Darden, the nation's largest full-service restaurant company, also owns Olive Garden and LongHorn Steakhouse among others. Shares are down about 7 percent this year.
Read the article here.