Red Lobster's Bankruptcy and Private Equity Involvement
Red Lobster's bankruptcy and closure of almost 100 locations was not solely due to endless shrimp promotions, but also because of asset-stripping by a private equity firm, leading to increased debt and rent costs. This practice has been seen in other retail chain failures and bankruptcies involving hospitals and nursing homes. The impact of such financial actions on businesses and employees can have significant ripple effects on the economy and communities.