What’s Happened To Red Lobster Will Happen To The British NHS, If We aren’t Careful….
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Red lobster has been in the news quite a bit, lately.
It was revealed that the popular shrimp outlet will be going into bankruptcy and the reasons for its collapse is the insatiable appetite of the American public for the unsustainable discounts and promotions offered by the food chain.
But nothing could be further from the truth.
What’s really happened to one of the most iconic American brands in recent times is the story of extreme capitalism in the 21st century.
When hedge funds put in a bid for establishments like Red Lobster, they do so for the express purpose of asset stripping.
As with longstanding establishments, their land assets, are usually the biggest draw.
And once acquisition has been confirmed, the break up starts, with the creation of shell companies, which are known as special purpose vehicles — SPVs.
SPVs exist for tax reasons, given that they are registered in tax havens in the Caribbean, but they also exist to ensure that the new owners can take apart companies and suck out every penny from them, and this usually happens by selling the the most valuable assets —which is more often than not the…