HomeWorldEconomyThe Raiding of Red Lobster – The bankrupt casual restaurant chain didn’t fail because of Endless Shrimp. Its problems date back to monopolist seafood conglomerates and a private equity play.
The Raiding of Red Lobster – The bankrupt casual restaurant chain didn’t fail because of Endless Shrimp. Its problems date back to monopolist seafood conglomerates and a private equity play.
July 5, 2024
The Raiding of Red Lobster –
The bankrupt casual restaurant chain didn’t fail because of Endless Shrimp. Its problems date back to monopolist seafood conglomerates and a private equity play.
>Golden Gate crippled Red Lobster by selling off one of its most valuable assets, the real estate it owned, in what’s known as a sale-leaseback, [for $1.5 billion](https://www.investmentnews.com/alternatives/news/reits-weather-red-lobster-bankruptcy-253552). With that sale, Golden Gate nearly made back its $2.1 billion purchase of Red Lobster, while turning the chain into a permanent leaser, adding a massive additional cost in the form of rent that was orders of magnitude bigger than the cost of Endless Shrimp. When commercial leases started going up, Red Lobster was highly exposed, but by then Golden Gate had already sold off its shares to Thai Union, which inherited all the debts Golden Gate stacked on the company.
Private equity destroys everything. Isn’t it nice to know your hospital is understaffed and people are doing to make the rich parasites richer?
Did this writer watch John Oliver and decidethey would report his exact story?
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>Golden Gate crippled Red Lobster by selling off one of its most valuable assets, the real estate it owned, in what’s known as a sale-leaseback, [for $1.5 billion](https://www.investmentnews.com/alternatives/news/reits-weather-red-lobster-bankruptcy-253552). With that sale, Golden Gate nearly made back its $2.1 billion purchase of Red Lobster, while turning the chain into a permanent leaser, adding a massive additional cost in the form of rent that was orders of magnitude bigger than the cost of Endless Shrimp. When commercial leases started going up, Red Lobster was highly exposed, but by then Golden Gate had already sold off its shares to Thai Union, which inherited all the debts Golden Gate stacked on the company.
Private equity destroys everything. Isn’t it nice to know your hospital is understaffed and people are doing to make the rich parasites richer?
Did this writer watch John Oliver and decidethey would report his exact story?
Same thing happened to Toys R Us.