Red Lobster filed bankruptcy after Golden Gate Capital's sale-leaseback

Golden Gate Capital sold Red Lobster's real estate and forced it to lease back at above-market rates. Customer count dropped 30%. The $20 "Endless Shrimp" promotion lost $11M. Filed Chapter 11 in 2024, closing 130+ locations.

Locations

Before

~700 restaurants

→

After

~518 restaurants

Change

-26%

Sources

How Private Equity Trashed Red Lobster

CNN Business

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