Was Endless Shrimp to Blame for Red Lobster's Bankruptcy?

To try everything Brilliant has to offer for free for a full 30 days, visit https://brilliant.org/patrick/. You’ll also get 20% off an annual premium subscription. Red Lobster was America’s largest casual dining seafood chain, with almost 600 locations across the United States and Canada. Its bankruptcy was announced earlier this week. The bankruptcy declaration insinuates that the chains equity owner who was also their biggest seafood supplier might have decided that their equity stake in the business was worthless, but that they could extract some extra value from the company before it declared bankruptcy by selling them a lot of extra shrimp, leading to the uneconomical "Endless Shrimp" deal at Red Lobster. The decision to make the $20-dollar endless shrimp deal a permanent menu item is said to have led to an $11 million dollar loss. The bankruptcy declaration says that “the Debtors are currently investigating the circumstances around these decisions.” ‪@pat_finnerty‬ video link    • What Makes This Song Stink Ep. 3 - Weezer ...   Red Lobster Bankruptcy Filing: https://dm.epiq11.com/case/redlobster... Patrick's Books: Statistics For The Trading Floor: https://amzn.to/3eerLA0 Derivatives For The Trading Floor: https://amzn.to/3cjsyPF Corporate Finance: https://amzn.to/3fn3rvC Ways To Support The Channel Patreon:   / patrickboyleonfinance   Buy Me a Coffee: https://www.buymeacoffee.com/patrickb... Visit our website: https://www.onfinance.org Follow Patrick on Twitter Here:   / patrickeboyle   Patrick Boyle On Finance Podcast: Spotify: https://open.spotify.com/show/7uhrWlD... Apple: https://podcasts.apple.com/us/podcast... Google Podcasts: https://tinyurl.com/62862nve Join this channel to support making this content:    / @pboyle