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.
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.
In this scenartio, the Landlord also owns the maintenance company, so the renter pays the wages of the maintenance advisor and maintenance costs.
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.
And the same thing happens to banks for people with mortgages.
the same happens to most mortgages, namely income goes to the lender and you get a house.
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