Remember when private equity decided to buy Toys R Us then proceeded to bleed it dry by over leveraging it with debt then let the discarded corpse to be consumed by bankruptcy and now there are basically no toy stores for kids outside a few isles in box stores?
Kind of like fattening an animal before slaughtering it to eat it..
https://www.theatlantic.com/magazine/archive/2018/07/toys-r-us-bankruptcy-private-equity/561758/
Less attention was paid to the albatross that Bain, KKR, and Vornado had placed around the company’s neck. Toys “R” Us had a debt load of $1.86 billion before it was bought out. Immediately after the deal, it shouldered more than $5 billion in debt.
https://www.theatlantic.com/magazine/archive/2018/07/toys-r-us-bankruptcy-private-equity/561758/
Less attention was paid to the albatross that Bain, KKR, and Vornado had placed around the company’s neck. Toys “R” Us had a debt load of $1.86 billion before it was bought out. Immediately after the deal, it shouldered more than $5 billion in debt.
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This wasnt mismanagement or "cashing out" in the sense of adding value to create wealth.
This was money games to bleed it out and leave it in the trash heap after.
This was money games to bleed it out and leave it in the trash heap after.