Red Lobster is abruptly closing dozens of restaurants | CNN Business

BearOfaTime, 28 days ago

“Abruptly”?

I’ve been waiting for this to happen for 20 years. RL never came up when people ask “where you wanna have dinner?”

jordanlund, 28 days ago

I think, our problem being in a coastal state, is even if you want seafood for dinner, there are WAY better choices than Red Lobster.

Delusional, 28 days ago

Well I imagine they won’t last very long when all the lobsters die out in ~10 years. They’ll have to change their name.

Jimmyeatsausage, 28 days ago

Dino Cafe had entered the chat

irreticent, 28 days ago

They’ll have to change their name.

“Dead Lobster”

The_v, 28 days ago

Not one of these articles ever mentions the true reason for their money issues.

They were purchased by a company that specializes in leveraged buyouts in 2014. At that time the prime rate was around 3.25%. They then loaded the company with debt and sold it to the current owners.

The prime rate of 8.5% means that the debt is now a massive chain around their neck sucking up all of the revenue stream. Their only option is to sell off assets to pay down the debt.

The executives make off with hundreds of millions and the employees get hosed.

jordanlund, 28 days ago

Same thing that happened with Toys R Us and Kay Bee toys.

I think it was Bain Capital responsible for those.

Cort, 28 days ago (edited 28 days ago)

Sun Capitol did the same to Marsh. Sold off all the really valuable properties and then folded after they got their money out

chonglibloodsport, 28 days ago

Yes. This is corporate raiding 101. This also happened to Instant Pot. The founder cashed out big time!