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.
Does the term “venture capitalist” refer to these types of activities? I thought that was more about funding startups (like in Silly Con Valley) and this was more private equity holders.
Or are they two sides of the same card?
I’m not sure honestly, I know venture capitalists buy companies usually with the intention of expanding or helping grow, but lately it seems like they pass around their debt, force them to bankrupt, liquidate and kill it.
Venture capitalism is about creating a monopoly by operating at a massive loss until you can jack up prices without competition
Kinda like how Uber and Lyft put cab companies out of business and then their prices skyrocketed?
I think you’re looking for the term vulture capitalism.