I follow several creators who autopse failed companies. 4 out of 5 times it seems like a leveraged buyout. I have no idea why it’s legal anymore. Kmart is an example off the top of my head.
Private equity lives doing it. Take a moderately floundering company. Buy the company by leveraging the companies’ own value where the company has to pay it back. Square the company as much as possible, paying minimum payments and hoover all profits to the private equity firm. File bankruptcy and write off the company when its empty.
I follow several creators who autopse failed companies. 4 out of 5 times it seems like a leveraged buyout. I have no idea why it’s legal anymore. Kmart is an example off the top of my head.
Private equity lives doing it. Take a moderately floundering company. Buy the company by leveraging the companies’ own value where the company has to pay it back. Square the company as much as possible, paying minimum payments and hoover all profits to the private equity firm. File bankruptcy and write off the company when its empty.
Kmart was fucked by the bizarre CEO of Sears.
https://en.wikipedia.org/wiki/Eddie_Lampert