Red Lobster’s decline can be attributed to several factors, but a significant cause was its sale to the private equity firm Golden Gate Capital in 2014. The decision turned fatal due to several reasons.
1. Loaded Debt: The private equity model relies on loading a substantial amount of debt onto the purchased company. Red Lobster, which was already struggling, suddenly found itself with an additional $1.5 billion in debt. This led to intense pressure to increase profits quickly to service this debt,
