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Joined 1 year ago
Cake day: September 24th, 2023
  • swallowyourmind@lemmy.worldtoNews@lemmy.world•Red Lobster files for bankruptcy, restaurants will stay openEnglish
    118·
    6 months ago

    Hedge fund gobbled for raping capital.

    Forced sale by Darden by activist (hedge) investors.

    New hedge fund owned RL company immediately sells all its property (land & buildings) to separate property company owned by hedge funds.

    Big dividends for hedge funds! Billions sucked out of company into shareholder pockets.

    New RL then leases all properties, incurring higher costs (now paying rent!)

    Pandemic.

    5 year leases all up! Property company raises rent!

    RL can’t afford higher rent on all locations, no longer has capital to borrow against (all sold 5 years ago), and goes bankrupt.

    MBAs are destroying the world.