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<blockquote data-quote="nevin" data-source="post: 9333428" data-attributes="member: 7024481">pretty common story these days.&nbsp; This is what happens when too much cheap money is available.&nbsp; companies play games like this it turns into hot potato.&nbsp; Eventually interest rates go up and the&nbsp; Last guy holding the company gets to file the bankruptcy.&nbsp; Its what's happening to Red Lobster.&nbsp; All the BS about unlimited Shrimp is silly.&nbsp; first&nbsp; investment company that bought them sold all the real estate that they owned and started leasing the restaurants instead of being rent free, that company made a profit selling the real estate and then resold them.&nbsp;&nbsp; Several other bad decisions&nbsp; by investment firms later and&nbsp; Red Lobster is blaming unlimited shrimp on it's way down the tubes because it's overloaded with debt. Happened to blockbuster too.&nbsp; You never hear they paid 90 percent of their debt off, recession hit and the high interest rates and bridge loans took them almost exactly right back to the billion dollar mark of debt in one year.&nbsp; Not a billion dollars in debt trying to do stuff, a billion dollars in debt taking high interest bridge loans and eventually long term financing.&nbsp; they owed more to the guys that did the bridge loans than the they owed to the banks for long term financing.&nbsp; They were a zombie company after that.&nbsp;&nbsp; Pretty common story but the papers never tell it.&nbsp; It's always amazon killed somoene, or netflix killed someone, not the bad decisions, that buried the company in debt.</blockquote>

[QUOTE="nevin, post: 9333428, member: 7024481"] pretty common story these days. This is what happens when too much cheap money is available. companies play games like this it turns into hot potato. Eventually interest rates go up and the Last guy holding the company gets to file the bankruptcy. Its what's happening to Red Lobster. All the BS about unlimited Shrimp is silly. first investment company that bought them sold all the real estate that they owned and started leasing the restaurants instead of being rent free, that company made a profit selling the real estate and then resold them. Several other bad decisions by investment firms later and Red Lobster is blaming unlimited shrimp on it's way down the tubes because it's overloaded with debt. Happened to blockbuster too. You never hear they paid 90 percent of their debt off, recession hit and the high interest rates and bridge loans took them almost exactly right back to the billion dollar mark of debt in one year. Not a billion dollars in debt trying to do stuff, a billion dollars in debt taking high interest bridge loans and eventually long term financing. they owed more to the guys that did the bridge loans than the they owed to the banks for long term financing. They were a zombie company after that. Pretty common story but the papers never tell it. It's always amazon killed somoene, or netflix killed someone, not the bad decisions, that buried the company in debt. [/QUOTE]

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