Private equity firms are driving major retailers into bankruptcy by buying stores and then paying themselves back by stripping the companies of their assets. Stores incur huge debts, are unable to modernize and become less attractive for shoppers. Sears and Kmart are prime examples. Eddie Lampert, a hedge fund owner who incidentally (or maybe not!) was Treasury Secretary Steven Mnuchin’s roommate at Yale, bought these companies.
The greed of the hedge funds and equity buyout companies is literally stripping these companies of all their assets, shuttering them down and causing the loss of millions of retail jobs, a byproduct of financial schemes that some call robbery. So when you see the abandoned buildings, don’t blame Amazon. Blame the financial wizards who have come up with this new scheme to suck companies dry for their funds’ personal gain, with no concern for their employees.
The rich get richer, the poor get the picture … HT Midnight Oil