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My understanding is that the main cause for failure was being brought up by private equity, loaded up with debt, and then being hit by huge interest rate rises.
by wiedelphine 3y ago
My understanding is that the main cause for failure was being brought up by private equity, loaded up with debt, and then being hit by huge interest rate rises.
- loudambiance 3y agoIsn't this essentially the same thing that killed Toys-R-Us?
- SQueeeeeL 3y agoYeah. It's bizarre that leveraged buyouts are even legal given how destabilizing it is to local economies; but also Bain Capital (the company which did the buyout of Toys R Us) was cofounded by Senator Mitt Romney, so you can start to understand why the FTC and Congress aren't really inclined stop the madness and regulate themselves more
- red-iron-pine 3y agoChanges to retail (e.g. online, e.g. Amazon) killed Toys-R-Us, PE just pimped it out until they could sell it for parts
- manishsharan 3y agoAnd Sears.