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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!
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Thank you for posting the real reason Red Lobster is in big trouble. But when you typed "Venture Capitalists" you misspelled the word Vulture.