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The article, beginning with the title, makes it seem as if "vulture capitalists" were benefiting by feasting on Toys R Us. In reality, they lost a big pile of m
by whack 9y ago
The article, beginning with the title, makes it seem as if "vulture capitalists" were benefiting by feasting on Toys R Us. In reality, they lost a big pile of money by buying a company for $1.3B, which eventually became ~worthless via bankruptcy. They made a bet which failed, and paid the price for it, so I don't see any purpose in kicking them while they're down. I'm not sure how much money the creditors lost, but they knew exactly what they were getting themselves into, so it's hard to have much sympathy for them.
Presumably, these "vulture capitalists" could only afford to make such a bet, because they had historically succeeded more often than they failed. If you're going to deride Bain/KKR as being bad for the economy, because of this failure, you should also have the intellectual consistency to compliment them for their successes in previous leveraged buyouts.