It’s not $11 million in losses. The $11 million is the cost of (a) the food that you’re reselling and (b) getting customers through the door. If it was real losses, they’d have known long before getting to $11 million and could’ve changed the deal. /If they had enough customers without putting the deal on, they wouldn’t have put the deal on. Either way, now they get an opportunity to advertise their deal that is so good it will let customers eat more shrimp than they’re paying for, so much that they could put the company out of business.
Have no fear, putting the $11 million in the loss column will be settled come tax time. And/or will be used to ‘justify’ taking a loan from the main shareholder’s other company at 20% interest so that Red Lobster dividends on the shares held by the middle class don’t exceed 6%.
It’s not $11 million in losses. The $11 million is the cost of (a) the food that you’re reselling and (b) getting customers through the door. If it was real losses, they’d have known long before getting to $11 million and could’ve changed the deal. /If they had enough customers without putting the deal on, they wouldn’t have put the deal on. Either way, now they get an opportunity to advertise their deal that is so good it will let customers eat more shrimp than they’re paying for, so much that they could put the company out of business.
Have no fear, putting the $11 million in the loss column will be settled come tax time. And/or will be used to ‘justify’ taking a loan from the main shareholder’s other company at 20% interest so that Red Lobster dividends on the shares held by the middle class don’t exceed 6%.