catastrophically underestimating the cost of a poorly thought-out deal on cheap shellfish

  • JamesConeZone [they/them]@hexbear.net
    link
    fedilink
    English
    arrow-up
    38
    ·
    edit-2
    6 months ago

    Very funny story, tl;dr

    • Red Lobster are $1B billion in debt

    • The previous owner sold land that the restaurants sit on to the new owner who then and leased it back to Red Lobster at massive increases

    • Thai Union became the only Red Lobster shrimp vendor, overcharging for shrimp and skipping quality reviews (Thai Union has written off its $500m+ investment)

    • Thai seafood firm Thai Union is an owner in the company and used Endless shrimp to dump its own shrimp supply which cost Red Lobster $11 million

    • Llituro [he/him, they/them]@hexbear.netOP
      link
      fedilink
      English
      arrow-up
      33
      ·
      6 months ago

      behind every good news story about a brand going under is the real story about innovative financial crimes committed by a venture capital firm that is something of an artisan at that sort of thing.