Quote:
Originally Posted by Vermilion Villager
This had nothing to do with how many shrimp you could eat in one sitting.
Red Lobster was bought by venture capitalists Golden Gate Capital and that's where the death spiral started. Golden Gate Capital spun off its real estate assets in a transaction known as a sale leaseback agreement. Red Lobster had long owned its own real estate but would now be paying rent to lease its restaurants. As the land became more valuable the leases payments continue to increase. Red Lobster became stuck with leases it no longer could afford to pay. Now with bankruptcy Golden Gate capital is free to sell the land… Which is what they really wanted to do all along. Welcome to the American way!
|
I believe Golden Gate is a Thailand company that specialized in catching shrimp and had no idea how to run restaurants. Buying Red Lobster was a built in market for selling their shrimp.
__________________
"I am a great believer in luck, and I find that the harder I work, the more I have of it." -Thomas Jefferson
|