re: Joe Strikes Back - Red Lobster about to close

quote:

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Red Lobster's cash flows have been hit by expensive leases

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One of the early things Golden Gate Capital did when it bought Red Lobster from Darden was separate out the real estate owned by RL into a separate entity and then sold it off. The leases set up with new owners were probably better initially as part of purchase or had to redone in past couple of years without having as much leverage.