How Red Lobster was stripped of its real estate and driven into bankruptcy.
Golden Gate Capital executed a $1.2B sale-leaseback in 2014, adding $1.8B in lease debt.
When Golden Gate Capital acquired Red Lobster for $2.1 billion in 2014, it immediately sold off the restaurant real estate for $1.2 billion. Viewers often ask how did Golden Gate Capital strip Red Lobster of its assets while leaving the chain burdened with $1.8 billion in long-term lease liabilities. By the time Thai Union took control before the 2024 Chapter 11 filing, the financial trap was already set.
An in-depth financial investigation into how Golden Gate Capital executed a $1.2 billion sale-leaseback that stripped Red Lobster of its real estate assets, saddled it with $1.8 billion in lease liabilities, and drove the chain into Chapter 11 bankruptcy.
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#RedLobster #PrivateEquity #GoldenGateCapital #SaleLeaseback #Bankruptcy
