Board 8 > Red Lobster files for backruptcy

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KamikazePotato
05/20/24 7:22:09 PM
#1:


https://www.cnn.com/2024/05/20/investing/red-lobster-restaurants-bankruptcy/index.html

The reason why:

https://x.com/intent/like?tweet_id=1792541353760473595

Thanks again, hedge funds

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WarThaNemesis2
05/20/24 7:26:12 PM
#2:


when i last went to red lobster the server was on his first day, the only cook that day quit after our orders were taken, and the replacement cook tried to serve raw lobster

that is my story of the only time i've been to red lobster in the last many decades

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Thorn
05/20/24 7:28:16 PM
#3:


KamikazePotato posted...
The reason why:
https://i.kym-cdn.com/photos/images/original/002/798/148/eef.jpg

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#4
Post #4 was unavailable or deleted.
pezzicle
05/20/24 7:31:27 PM
#5:


Sorry can someone explain how that reason works or makes any sense. Im not sure if Im an idiot or really tired

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WarThaNemesis2
05/20/24 7:32:35 PM
#6:


UltimaterializerX posted...
Companies refusing to pay their employees leads to bad employees.

Shocking.

yeah we weren't unhappy with the server, who was extremely nice and apologetic and clearly having a nightmare first day, and if the cook just walks out it means there had been problems for a long while before then, and the replacement had just gotten off their shift before returning to save the day so I imagine they were dead on their feet

but it is I think an accurate representation of what upper management turned red lobster into

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Umbreon
05/20/24 7:36:02 PM
#7:


A fund bought the company, sold off all the land Red Lobster restaurants are located on, leased the land back to Red Lobster, and jacked the rent. Just so you know what is really going on here.


This sounds like a scam Eddy would try to pull off.

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Thorn
05/20/24 7:36:32 PM
#8:


pezzicle posted...
Sorry can someone explain how that reason works or makes any sense. Im not sure if Im an idiot or really tired
I think it's that the hedge fund that acquired Red Lobster had Red Lobster sell all of its land (to the hedge fund) then the hedge fund leased it back to Red Lobster (so that the restaurants could, y'know, continue operating where they were) but then jacked up the rent Red Lobster had to pay to use the land that the hedge fund now owned.

aka they basically bought Red Lobster and then intentionally drained all the money out of them with this, walking away with the money but forcing Red Lobster to declare bankruptcy.

Basically extracting all the value out of Red Lobster and discarding it once it's empty.

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pezzicle
05/20/24 7:39:19 PM
#9:


Thorn posted...
I think it's that the hedge fund that acquired Red Lobster had Red Lobster sell all of its land (to the hedge fund) then the hedge fund leased it back to Red Lobster (so that the restaurants could, y'know, continue operating where they were) but then jacked up the rent Red Lobster had to pay to use the land that the hedge fund now owned.

aka they basically bought Red Lobster and then intentionally drained all the money out of them with this, walking away with the money but forcing Red Lobster to declare bankruptcy.

but they own red lobster

they bought red lobster. Made red lobster (which they now own) sell all their land to themselves (what?) and then made red lobster (which they own) pay higher rent to.themselves?

im so confused

this would maybe make sense if I wasnt running on 4 hrs of sleep

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KamikazePotato
05/20/24 7:42:27 PM
#10:


Because the idea isn't to run Red Lobster as a successful business in the long term - they just want to drain as much money from the company as possible, then move on the the next one. Same thing happened to Toys R Us.

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NFUN
05/20/24 7:43:27 PM
#11:


when a corporation buys another business they don't automatically become perfectly and totally integrated. The hedge fund wanted the assets of the company and this way was more legal or legitimate then directly robbing it blind

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VFrench1933
05/20/24 7:46:19 PM
#12:


KamikazePotato posted...
https://www.cnn.com/2024/05/20/investing/red-lobster-restaurants-bankruptcy/index.html

The reason why:

https://x.com/intent/like?tweet_id=1792541353760473595

Thanks again, hedge funds
Who gives a shit, the restaurant sucks - and the prices are insane. Their Lobster Bisque was so bad - like your name is Red Lobster - Lobster Bisque should be your BREAD AND BUTTER.

Instead, it tasted like microwaved Campbells soup with some little pieces of Lobster sinew put in.
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VFrench1933
05/20/24 7:47:19 PM
#13:


My "who gives a shit" was at the X poster in the OP whining about the Hedge Fund jacking up rent.

Red Lobster was a bad product. Bad products die in a Capitalist society.

It's time to die. Hopefully Olive Garden is the next to go. $20 for some fake-ass Lasagna...
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Thorn
05/20/24 7:54:27 PM
#14:


pezzicle posted...
but they own red lobster

they bought red lobster. Made red lobster (which they now own) sell all their land to themselves (what?) and then made red lobster (which they own) pay higher rent to.themselves?

im so confused

this would maybe make sense if I wasnt running on 4 hrs of sleep
bankruptcy is magical (if you're rich) (and it's not student debt)

run red lobster into debt by putting them into debt to yourself then have them declare bankruptcy and all that red just goes away leaving you with the bag

i'm oversimplifying but yeah

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VFrench1933
05/20/24 7:59:59 PM
#15:


Yeah, bankruptcy you basically do a buncha shit - then declare Bankruptcy and declare all your Assets worth a fraction of what they (really) are.

Then you pay back a fraction of the debt and owings you had. In other words, for a Hedge Fund, while they are busy paying back fractions of the debt they accumulated - they are busy making themselves rich in the stock market and other instruments (bonds, treasury instruments, futures).

They make money FROM the debt basically.
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Xeybozn
05/20/24 8:05:50 PM
#16:


Thorn posted...
bankruptcy is magical (if you're rich) (and it's not student debt)

run red lobster into debt by putting them into debt to yourself then have them declare bankruptcy and all that red just goes away leaving you with the bag

i'm oversimplifying but yeah

Declaring bankruptcy means Red Lobster can't pay its debts. Obviously somebody else owns that debt and isn't getting paid now. It can't be the hedge fund (because this was the plan the whole time), so who is it?

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Thorn
05/20/24 8:07:53 PM
#17:


That... is a good point. I don't have an answer!

idk how these hedge fund acquisition drains work exactly

Edit: Thinking about this some more... maybe they had Red Lobster actually pay the jacked up rent (because it went to them) and it was everyone else they would have to pay to do business (utilities, sourcing ingredients, employee pay, etc.) they left out in the cold?

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Seginustemple
05/20/24 8:13:58 PM
#18:


perhaps there's some sort of lobster shell company involved

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ChaosTonyV4
05/20/24 8:16:06 PM
#19:


VFrench1933 posted...
My "who gives a shit" was at the X poster in the OP whining about the Hedge Fund jacking up rent.

Red Lobster was a bad product. Bad products die in a Capitalist society.

This isnt always true or even relevantgood products die all the time, too.


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redrocket
05/20/24 8:18:51 PM
#20:


Late stage capitalism

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UshiromiyaEva
05/20/24 9:09:15 PM
#21:


VFrench1933 posted...
Who gives a shit, the restaurant sucks - and the prices are insane. Their Lobster Bisque was so bad - like your name is Red Lobster - Lobster Bisque should be your BREAD AND BUTTER.

Instead, it tasted like microwaved Campbells soup with some little pieces of Lobster sinew put in.

Who the fuck......

Anyways, the people who give a shit are probably all the people losing their jobs.

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KamikazePotato
05/20/24 9:09:39 PM
#22:


User Info: VFrench1933
Novice User
User Since: Feb 2024
Karma: 37

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VFrench1933
05/20/24 9:58:46 PM
#23:


UshiromiyaEva posted...
Who the fuck......

Anyways, the people who give a shit are probably all the people losing their jobs.

Really not my problem to worry about it. It is a terrible restaurant that charges terrible prices. Folks will find other jobs.

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pezzicle
05/20/24 10:07:51 PM
#24:


KamikazePotato posted...
Because the idea isn't to run Red Lobster as a successful business in the long term - they just want to drain as much money from the company as possible, then move on the the next one. Same thing happened to Toys R Us.

NFUN posted...
when a corporation buys another business they don't automatically become perfectly and totally integrated. The hedge fund wanted the assets of the company and this way was more legal or legitimate then directly robbing it blind

okay yes thank you. This games sense. My brain was not letting me make sense of this

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VFrench1933
05/20/24 11:05:06 PM
#25:


KamikazePotato posted...
User Info: VFrench1933
Novice User
User Since: Feb 2024
Karma: 37
Dude, you have been here 19 years. Ninteen years. Your account can vote.

I really don't think some 40 year old bald dude needs to be talking trash.
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PeaceFrog
05/20/24 11:11:30 PM
#26:


UshiromiyaEva posted...
Who the fuck......

Anyways, the people who give a shit are probably all the people losing their jobs.
Damn i went through the exact same thought processes as you.

I'm surprised this didn't happen earlier, wasn't red lobster in the news a few months ago for struggling like mad?

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paperwarior
05/20/24 11:15:05 PM
#27:


Thorn posted...
Basically extracting all the value out of Red Lobster and discarding it once it's empty.
Probably used one of those little metal pick things

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Leonhart4
05/20/24 11:23:05 PM
#28:


VFrench1933 posted...
Dude, you have been here 19 years. Ninteen years. Your account can vote.

I really don't think some 40 year old bald dude needs to be talking trash.

So this is what happens when people get kicked out of CE huh

Thanks Fandom

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Paratroopa1
05/20/24 11:25:24 PM
#29:


VFrench1933 posted...
Dude, you have been here 19 years. Ninteen years. Your account can vote.

I really don't think some 40 year old bald dude needs to be talking trash.
Ahahaha you are gonna get so bullied here
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azuarc
05/20/24 11:32:36 PM
#30:


Is there a particular reason we're picking on this French guy?

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Paratroopa1
05/20/24 11:34:51 PM
#31:


azuarc posted...
Is there a particular reason we're picking on this French guy?
Extremely failed vibe check
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KamikazePotato
05/20/24 11:38:35 PM
#32:


If you're gonna post shit opinions, do it on your main account

Anything else is cowardice

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VFrench1933
05/20/24 11:53:57 PM
#33:


Paratroopa1 posted...
Ahahaha you are gonna get so bullied here

Dude, I am THIRTY FIVE years old. I have been on the Internet since I was a kid - the old AOL chat rooms and shit where people would ask a/s/l and then say sexual weird stuff.

You're not gonna bully me. I assure you, you would have to go against the TOS to offend me
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mnk
05/20/24 11:55:09 PM
#34:


KamikazePotato posted...
If you're gonna post shit opinions, do it on your main account

Anything else is cowardice

I just assumed this was someone banned who can't get back into CE and is trying their luck with us.

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Paratroopa1
05/20/24 11:56:38 PM
#35:


Ooooh look out we've got a THIRTY FIVE year old over here, damn they're so cool
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Sorozone
05/20/24 11:57:39 PM
#36:


Frenchy is just a Dallas fan with a drinking problem. It's ok bud.

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Leonhart4
05/20/24 11:57:40 PM
#37:


Speaking of posting like you're still a child in AOL chat rooms, go join the Discord and get involved there

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Underleveled
05/20/24 11:58:08 PM
#38:


VFrench1933 posted...
Dude, I am THIRTY FIVE years old. I have been on the Internet since I was a kid - the old AOL chat rooms and shit where people would ask a/s/l and then say sexual weird stuff.

You're not gonna bully me. I assure you, you would have to go against the TOS to offend me
Bro your AOL account could rent a car.

I really don't think some 35 year old needs to be talking shit.

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VFrench1933
05/21/24 12:11:40 AM
#39:


Me being 35 is why I HAVE TO talk shit. I'm old and my life has passed me by, and people listen to Taylor Swift and Doja Cat and weird-ass music and I once was "with it" but now I don't know what "it" is.
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Punnyz
05/21/24 12:12:01 AM
#40:


I was gonna bitch about possibly losing my Endless Shrimp but uh...da fuck yall doin

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Forceful_Dragon
05/21/24 12:32:20 AM
#41:


Punnyz posted...
I was gonna bitch about possibly losing my Endless Shrimp but uh...da fuck yall doin

For real, I wanted to commiserate on the news but clearly that's not the vibe here anymore.

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redrocket
05/21/24 12:37:15 AM
#42:


This topic sucks and is now about ponies

https://youtu.be/bVfzvS0FbR8?feature=shared

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Isquen
05/21/24 12:37:42 AM
#43:


Quick, roast my old ass account while you're at it. Maybe we can use the heat to cook up a competent bisque.

(Red Lobster has always sucked and I'd get sick from it whenever we had it as a kid. Good riddance, but ugh that capitalism takes a W out of its L.)

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mnk
05/21/24 12:49:37 AM
#44:


I don't think I ever went there except for Endless Shrimp.

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Kenri
05/21/24 12:56:54 AM
#45:


VFrench1933 posted...
Me being 35 is why I HAVE TO talk shit. I'm old and my life has passed me by, and people listen to Taylor Swift and Doja Cat and weird-ass music and I once was "with it" but now I don't know what "it" is.
idk man i think 35 is pretty solidly within the taylor swift demographic. maybe you were never with it.

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VFrench1933
05/21/24 1:03:29 AM
#46:


fuck taylor swift, lmao

My fiance tells me about her crap all the time

"OMg this week her new album broke streaming records"

I'm like "Yeah if the Beatles were streaming in the 60's, they would have records never broken ever."

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Sorozone posted...
Frenchy is just a Dallas fan with a drinking problem. It's ok bud.
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HaRRicH
05/21/24 1:20:44 AM
#47:


VFrench1933 posted...
I assure you, you would have to go against the TOS to offend me
I assure you, you would have to jump on this trampoline to convince me you're flying.

Thought you said you grew up on the internet.

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HaRRicH
05/21/24 1:24:40 AM
#48:


Anyway, I liked Red Lobster, but there was a lobster shell company-joke earlier in the topic that has helped ease the pain.

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Accel_R8
05/21/24 1:30:02 AM
#49:


VFrench1933 posted...
My "who gives a shit" was at the X poster in the OP whining about the Hedge Fund jacking up rent.

Red Lobster was a bad product. Bad products die in a Capitalist society.

It's time to die. Hopefully Olive Garden is the next to go. $20 for some fake-ass Lasagna...

hell naw fuck right off, olive garden is delicious. L take.

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Paratroopa1
05/21/24 1:30:49 AM
#50:


For what it's worth, Red Lobster is still alive for now but I doubt it will be for all that much longer. Probably time for me to start figuring out if I can get the cheddar bay biscuit recipe right. Honestly, they'd probably have more luck if they just re-opened as a series of little shacks that make and sell biscuits.
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