I was reading about how the restaurant chain Rubio's was closing a bunch of locations and blaming California's new minimum wage law for fast food workers.
So I did a quick search for Rubio's with the term "private equity" and you're never going to believe this but.... yes you will believe it.
Do you think the problems at Rubio's, which seemed to get bad in 2017 and really came to a head in 2020, were related to any minimum wage laws in Florida? Or do you think they're bullshitting for ideological reasons? www.bloomberg.com/news/article...
Please read the part again on how management overloaded the company with debt. Please read up on how Private Equity firms in general overload companies with debt.
There's no quality of product that can fight against that.
I am pretty familiar with how LBO's work.
At the time they made the loans, the cash flow of the business was sufficient to support them (otherwise no lender would do it). Obviously things changed since then, and bad food certainly makes it harder for a restaurant to succeed.
Like clockwork. Really don't get how PE LBOs are legal when every last time it's basically a hostile takeover aimed at bleeding something dry, or setting it up to be bled dry by the last group holding the bag.
Since pandemic changed the way I view small businesses. There is a class structure in this country that Republican Party encourages that anyone with a shitty little or big business is better than people who work for wages. If you can’t afford the cost of doing business you shouldn’t be in business.
