A lot of hedge fund and private equity guys make money by doing necessary things management is unwilling, or politically incapable, of doing. Unprofitable busi

A lot of hedge fund and private equity guys make money by doing necessary things management is unwilling, or politically incapable, of doing. Unprofitable businesses, by definition, destroy their owner's wealth. Saying an unprofitable business has to continue operating is basically saying, "I think business owners have to operate charities", which is something I don't believe. Sometimes the best thing is the big job cut, at least that way, the employees, landlords, lenders, etc. can all start fresh, and put whatever bad situation exists today, behind them. I think of private equity as corporate garbage collection. Sometimes adjustments is painful.