this is my favorite take on the $CAKE move by @LAForeverHall
no spoiler alerts but... CRE has the (very) weak hand herehttps://lizardbrain.substack.com/p/corona-cheesecake-and-testing-the …
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Not sure I agree with the idea of redefining what debt is, but some great points (and contrarian/innovative for double points) are made. AFAIK, chapter 11 has always given business renters a lot of power over landlords. Also,
$CAKE is starbucks level in terms of its leverage.pic.twitter.com/zbus2DRou5
I wouldn't be surprised if they have some force-majeure/act of god provisions in their contracts as a matter of practice. It's really a renters market in the type of locations they rent (a lot of malls). This is consistent with the idea that Cheesecake Factory has the leverage.
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Landlords are just yet another asset-liability mismatch like Wework, right barbi
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the world is an asset-liability mismatch (to the man with a hammer...)_
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Yeah I agree with Liz.. WTF is the landlord going to do? I don’t know how diversified their landlord base is.. I would have expected this to be more 1) done w/ phone calls, 2) the letter to be less flowery / more of a legal doc granting a holiday
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