Reminder that Red Lobster was *not* tanked by endless shrimp; it was tanked by private equity.
Golden Gate Capital bought it and immediately began strip mining by selling off Red Lobster's real estate, thereby converting the company's appreciating assets into perpetual lease payments.
Golden Gate Capital bought it and immediately began strip mining by selling off Red Lobster's real estate, thereby converting the company's appreciating assets into perpetual lease payments.
Reposted from
Phil Lewis
Red Lobster CEO says endless shrimp is never coming back because ‘I know how to do math’
Comments
I don't think the PE shenanigans really breached the public consciousness – as bonehead simple as the land scam is, people tend to glaze over when they hear "PE" – so it behooves Red Lobster to keep the "easy" explanation in the media.
Here’s one article about it.
https://www.fastcompany.com/91129776/what-really-killed-red-lobster-bankruptcy-private-equity
HA HA HA HA
Such a good explanation of how vulture capitalists are able to liquidate companies and "load them up with debt." I never understood the mechanism.
Thank you!
Toys R Us, Sears, Red Lobster, etc.
Vulture capitalism.
Obviously, I'm exaggerating a bit but not by much.
Leaseback works because the government is actually selling the right to take the depreciation on property off on taxes (which government cannot exploit, but private entities can).
Leaseback is how NY MTA financed its subway cars and fare equipment for example.
You still get paid. $7.25
Humans are dumb apes.
Also, anything that defends the honor of endless shrimp is okay in my book.
Make 'em feel bad for wanting shrimp.
I like that he plans to bring hush puppies back, tho.
I can get hush puppies other places, can even make myself if necessary
It wasn't just endless shrimp, it was endless shrimp from a supplier who sat on the board/owned the company and forced the chain to buy at an inflated price.