Every year, for a short period, you could get endless shrimp at Red Lobster. Then last summer it made the deal a permanent fixture on its menu: All-you-can-eat shrimp for $20. The change, motivated by a new shareholder that specialized in canned seafood and opposed by management, cost the company $11 million. On Sunday, it filed for bankruptcy. Here's more from CNN about the ill-fated promotion and how it contributed to the demise of the casual dining chain.
What killed Red Lobster? Sure, blundered promotions, but that is not the big thing--they might have recovered from that. The big thing is PE & their propensity to kill things off, sucking marrow from the bone of generally productive concepts. Debt loading is one way, but also real estate shenanigans. Don't come in and pretend you're helping a company grow by selling off assets then making the lease them back at above-market rates. #DebtLoading#RealEstate#RedLobster https://www.cnn.com/2024/05/21/business/red-lobster-endless-shrimp-bankruptcy/index.html
Boy, this auction liquidator said "screw it, no photos, no lots, we're just going to sell the whole damn thing" Anyone want a Red Lobster (INCLUDING EVERYTHING IN THE PREMISES)? #RedLobster#bankruptcy#auction#liquidator
Stoves, fish tanks, fryers, chairs,
It's all yours and cheap--whatever's on the floor
You have to move quick, pay in cash
We need that money NOW, gotta move things out the door
Need a dining booth and a matching chair?
Fridge, plates, forks, knives and spoons?
Make a bid now, and make it soon!
It might all be yours tomorrow, for just a doubloon!
Why you may ask are we shutting down things?
Little tiny lobsters just don't sell
Hurry hurry gotta get that cash
Sheesh, this kind of stress just makes me yell
"Judge overseeing Giuliani bankruptcy castigates former mayor’s ‘troubling attitude vis-à-vis the law,’ rejects bid to appeal $148 million defamation judgment"
#TylerCowen adds: "Here is the full NYT story, noting that account holders did not receive (significant) gains in the value of bitcoin that otherwise would have accrued."