Basically, the company had to pay for its own buyout when private equity firms KKL, Vornado, and Bain bought the company for $6.6 billion, mostly with loans.
Because the company then had to pay off those extreme loans, they were forced to sell off their assets and property, which they leased back from the very private equity firms that now owned them.
The same thing happened more recently with Red Lobster and JoAnn Fabrics.
Yeah?
Isn’t that the entire thing that private equity firms do? Buy up companies, sell all their assets to the private equity firm, then have them lease it all back for insane amount until it’s bankrupt.
Makes a whole lot of short term profits, destroys the company and it’s employees. No fucks given
Private equity firms are a cancer (amongst many cancers) on humanity
They killed Karstadt this way, V&D, and I bet a bunch of other department stores too.
Looks like EA is next on the chopping block.