Red Lobster's Bankruptcy Filing Attributes Decline to Financial Practices, Not Endless Shrimp Promotion
Red Lobster's bankruptcy filing reveals that the chain's decline was attributed to financial practices, not the popular $20 shrimp promotion. The company's former CEO alleged that Thai Union, its largest shareholder and shrimp supplier, exerted undue influence over decisions that led to its downfall. The chain's financial troubles began with a 2014 acquisition by Golden Gate Capital, which used a sale-leaseback of real estate to fund the deal.
Tickers: $DRI
Topics: bankruptcy corporate governance private equity Red Lobster Thai Union