toussaint on Nostr: More Perfect Union: Red Lobster had $2.3B in sales in 2021. Now it's filing for ...
More Perfect Union:
Red Lobster had $2.3B in sales in 2021. Now it's filing for bankruptcy. Some blame endless shrimp, but the truth is simpler: private equity
Golden Gate Capital, a private equity firm, bought them in 2014.
To finance this deal, Golden Gate sold off Red Lobster's real estate to another entity —American Realty Capital Properties — and then immediately leased the restaurants back.
Suddenly, restaurants had extra rent expenses...
#CapitalismIsKillingYou
https://www.businessinsider.com/red-lobster-endless-shrimp-bankruptcy-private-equity-debt-real-estate-2024-5
Red Lobster had $2.3B in sales in 2021. Now it's filing for bankruptcy. Some blame endless shrimp, but the truth is simpler: private equity
Golden Gate Capital, a private equity firm, bought them in 2014.
To finance this deal, Golden Gate sold off Red Lobster's real estate to another entity —American Realty Capital Properties — and then immediately leased the restaurants back.
Suddenly, restaurants had extra rent expenses...
#CapitalismIsKillingYou
https://www.businessinsider.com/red-lobster-endless-shrimp-bankruptcy-private-equity-debt-real-estate-2024-5