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   Dan Gillmor (dangillmor@mastodon.social)'s status on Tuesday, 21-May-2024 14:08:43 JST Dan Gillmor

   Meet the "private equity" people who did so much to drive Red Lobster into the ground -- the top executives at Golden Gate Capital.

   https://goldengatecap.com/team/?_sft_function=operating-executives

   They sold off the restaurant real estate to help pay for the buyout, and leased it back at what the bankruptcy filing describes as "priced above market rates."

   • Minoru Saba repeated this.
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     Paul Schoe (paulschoe@mastodon.world)'s status on Tuesday, 21-May-2024 23:42:01 JST Paul Schoe

     in reply to

     Everybody who sells their business to a VC knows that the first thing that they will do is sell the real estate and then rent it back to the company.

     That rent becomes a millstone around the company's neck, making it almost impossible to survive in lean times.

     If you want your company or brand to survive, know that giving a VC the majority of votes will almost certainly not secure its long-term future.

     Bye-bye for a healthy Red Lobster.

     @hn50
     #RedLobster #VC@dangillmor@mastodon.social