Yea - not quite understanding the math here.
Spent 18 million and owes half a million in RENT.
What did he spend 18 million on - decorating??
Guessing he developed the building for the owner - made 18 million and then signed an agreement to lease back the restaurant. Would make a lot more sense if you think about it.
Company A (he owns) - charges 18 million to build - cost 14 million to build - he makes 4 million in profit.
Company B (he owns) agrees once A builds the location - they will rent for 500k per year or something. Pays the first few months and enjoys the popularity that comes with being the new kid in town and the novelty. 6 months later as that wears off - stops paying rent. A year later gets locked out for non payment of rent and files bankruptcy. Walks away from a million in debt by giving up 100k they have in the bank.
End of the day - owner of both A and B is 3.9 million richer having built the project and profited - while having lost a little on the failed risky venture. Tomorrow he will take the 3.9 million - buy another failed restaurant location for cents on the dollar and reopen a new location.
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