2 ms·
What a short sighted, money grubbing decision by people that didn't actually care about the wellbeing of the company. Keeping the land the restaurants are on me
by TheGlav 2y ago
What a short sighted, money grubbing decision by people that didn't actually care about the wellbeing of the company. Keeping the land the restaurants are on means higher margins of profit long term and the ability to weather problems. Selling it off and then leasing it back does...exactly what happened here.
- DiggyJohnson 2y agoYou're responding as if the person you're replying to wasn't asking a question, but stating a fact. Do you know about the details or even a general outline of the considerations that went into this decision?
- ink_13 2y agoBluntly, they're irrelevant. Selling off the real estate is a short-term books-juicer that's tantamount to pillaging the contingency fund. Classic corporate raider move.
- DiggyJohnson 2y agoIt seems fine to me if the other outcome was an earlier and less-efficient bankruptcy and liquidation.
- pfdietz 2y agoWhy should anyone care about the wellbeing of a company? This sounds like an exercise in anthropomorphism.
- Zenzero 2y agoThe people in PE don't concern themselves with the wellbeing of a company in any sort of moral or sentimental sense. The company's future is dependent on what turns the highest profit on their time and investment. Sometimes the most money is made in value extraction and crippling the company long term. They are the vampires and vultures of the economy. In fact you could argue that Red Lobster has suffered from a long term decline due to poor positioning in the marketplace, and the PE shops are accelerating what was likely to happen anyway.