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Buried In The Grift
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We've seen several major brands file for bankruptcy since the pandemic hit, but you should focus your attention on one particular part of the story of the Chapter 11 filing from 24 Hour Fitness. On the surface, you might think that the trouble was just the pandemic shutdown, but then you see this: "The company has more than $1.3 billion in debt after a buyout by AEA Investors and the Ontario Teachers' Pension Plan." There's the real reason: private equity. saddling a successful company with debt, strip-mining the assets, and leaving it bankrupt, screwing vendors in the process. If you are talking about the economy and not talking about private equity's role in destroying many previously solvent companies and institutions, you're missing the real story. Or you're concerned that the company that owns your station might recognize the situation. (USA Today)
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