Carville’s Spicy Rant: Dems Must Ditch AOC and Bernie’s Chaos for Sane, Winning...
WOMP WOMP: Frank Luntz Panel Destroys Media Lie That Trump Voters Regret Their...
We're Waiting for Dems to Go Protest This Latest Round of ICE Criminal...
American-Born 2-Year-Old Allegedly Deported With ‘No Meaningful Process'
BBC Arabic’s Hateful and Anti-Semitic Rant, Brought to You by British Taxpayers’ Wallets
OUTRAGEOUS: VP of WI Law and Liberty Breaks Down Charges, Possible Sentencing for...
Stephen A. Smith Agrees Shedeur Sanders Is Victim of ‘Kaepernick-Level Collusion’
Montana's GOP-Led Housing Revolution: Bold Reforms Leave Democrats Stunned
Shedeur Sanders’ Draft Slide Stings, But Prank Callers Add Insult to Injury with...
The Great Blue Suit Scandal: Lefties LOSE THEIR MINDS Over Trump's Funeral Attire
Adam Schiff Didn't Want Biden's Pardon but Watch His Weasel Spin About Not...
Requiescat In Pace: World Leaders and Faithful Gather at the Vatican to Pay...
Jamaal Bowman Pulls the Alarm: The NFL is 'Afraid' of Shedeur Sanders Because...
'Been Owed This for 5 Years'! Scott Jennings Calls Out Randi Weingarten's Lies...
Up Next for Dem Sen. Chris Van Hollen: Margaritas With Judge Dugan?

Elizabeth Warren Blames 'Greed', Not Bidenomics, for Red Lobster Bankruptcy

AP Photo/Matt Rourke

Elizabeth Warren has never met a problem that she didn't 1) attribute to 'corporate greed' and 2) think she could solve with more government intervention.

This time, she's pouncing on Red Lobster's recent bankruptcy, blaming corporate greed.

Advertisement

Here's what Fast Company writes:

The first of the owners in question was a private-equity firm called Golden Gate Capital, which bought Red Lobster in 2014 from Darden Restaurants, which owns a number of different restaurant brands, including Olive Garden and LongHorn Steakhouse. Typically, when a private-equity firm takes over a company, it finances the acquisition by loading the company down with debt, which makes the deal cheaper for the PE firm but also makes it harder for the company to thrive. In Red Lobster’s case, though, the problems went beyond that. While Golden Gate Capital did add debt to Red Lobster’s balance sheet, it also made another move, selling off Red Lobster’s real-estate assets for $1.5 billion, forcing Red Lobster to lease those locations back.

These kinds of sale-leaseback deals are not unusual in retail or the restaurant business. And for Golden Gate, it was a great arrangement, since the deal covered most of what it had paid for Red Lobster. For Red Lobster itself, though, the arrangement was less than ideal. These were long-term leases, with rent increases written into the contract. And the leases were what are called “triple-net” leases, which meant that Red Lobster was responsible for all the operating expenses, property taxes, and insurance at the locations. As Restaurant Finance Monitor wrote at the time, the deal gave Red Lobster “little room for error” at a moment when it was struggling with falling sales and a weak brand.  

Advertisement

X users were quick to point out the flaw in this thinking:

Big swing and a miss.

All of this is true.

We do, too.

And COVID lockdowns, and inflation, and government policies concerning businesses, wages, etc.

Must be nice.

Advertisement

Only other's private equity and wealth. Not theirs.

Best economy ever, Jack!

Because she's using all the buzzwords.

But it's okay when politicians do it.

No, she has not.

We're not supposed to notice that.

We laughed out loud.

Advertisement

Totally weird.

Excellent question. Why, Lizzy?

Join the conversation as a VIP Member

Recommended

Trending on Twitchy Videos

Advertisement
Advertisement
Advertisement