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Standard practice. The retailer's assets are converted to profit for some financial firm and the retailer dies. Hedge funds gain enough control to saddle them
by kevin_b_er 8y ago
Standard practice. The retailer's assets are converted to profit for some financial firm and the retailer dies. Hedge funds gain enough control to saddle them with debt, then cash out.
These major retailers failing? They're engineered to fail by the parasite that is the financial industry that vacuums up money into its control.
It is no surprise that the CEO, who owns the hedge fund that will give him a pretty penny of a 1 Billion with B cashout, wants to axe the company his somehow CEO of, for his own profit. It would not surprise me if the hedge fund got to install him though owning enough of the company.
This is nothing but the modern reincarnation of Gordon Gekko. Greed is good. Only they've evolved their methods of extracting and consolidating wealth from the public since then.
- Drdrdrq 8y agoIs it legal or can other shareholders sue him and the fund?
- vkou 8y agoYou can sue anyone for anything, but generally speaking, mismanaging a company to screw minority shareholders is grounds for a lawsuit. Sadly, these kinds of cases are never a sure thing. They can be settled for pennies on the dollar.
- empath75 8y agoSame bullshit happened to Toys R Us. Leveraged buyouts should be illegal.
- rohitb91 8y agoNot to mention no one paid for the crimes of 2008.
- hinkley 8y agoIn the 80's this was called Corporate Raiding. There's even a movie with a young(ish) Danny Devito called Other People's Money. The execution has changed (pun intended), but it's an old trick.
- shoo 8y agoAlso worth watching: "The Crimson Permanent Assurance"