this post was submitted on 29 Sep 2025
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Today I Learned

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Basically, the company had to pay for its own buyout when private equity firms KKL, Vornado, and Bain bought the company for $6.6 billion, mostly with loans.

Because the company then had to pay off those extreme loans, they were forced to sell off their assets and property, which they leased back from the very private equity firms that now owned them.

The same thing happened more recently with Red Lobster and JoAnn Fabrics.

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[–] groet@feddit.org 31 points 10 hours ago (3 children)

That's how landlords work.

Take loan, buy houses, house has to pay back loan via rent, rent is paid for by renter.

Landlord gets house for free, everything paid by renter.

[–] Auli@lemmy.ca 8 points 8 hours ago

And the same thing happens to banks for people with mortgages.

[–] SupahRevs@lemmy.world 6 points 4 hours ago (1 children)

In this scenartio, the Landlord also owns the maintenance company, so the renter pays the wages of the maintenance advisor and maintenance costs.

[–] itztalal@lemmings.world 3 points 2 hours ago

As usual, renting is one of the biggest scams society has fallen for.

We only accept it as normal because so many people around us are doing it.

[–] jumping_redditor@sh.itjust.works -2 points 9 hours ago (1 children)

the same happens to most mortgages, namely income goes to the lender and you get a house.

[–] DarrinBrunner@lemmy.world 4 points 5 hours ago* (last edited 5 hours ago) (1 children)

But, you get the equity, and you own the house when (if) you pay off the loan. Renters get nothing.

Renters get a roof over their head (and they should be grateful for that). /s