[JP]

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.

[Skip]

I like Red Lobster.

[Stu from NYC]

Originally Posted by Skip

I like Red Lobster.

Than you had best go before it closes as I keep hearing

[blueash]

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!

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

[bmcgowan13]

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.!

How private equity rolled Red Lobster

Interesting post Vermilion Villager... I had not heard that before and I went down a rabbit hole reading up on Golden Gate.

Thanks for shedding some light on this..

[fdpaq0580]

Originally Posted by blueash

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

Love it! So true. 😂