Private equity bosses took $200m out of Toys R Us and crashed the company, lifetime employees got $0 in severance


Boing Boing has the article Private equity bosses took $200m out of Toys R Us and crashed the company, lifetime employees got $0 in severance,

Private equity’s favorite shell game is to take over profitable businesses, sell off their assets, con banks into loaning them hundreds of millions of dollars, cash out in the form of bonuses and dividends, then let the businesses fail and default on their debts.

This is why I started to use the term vulture capitalists to describe these private equity types. It is good to have an article like this that I can point to. This has some details that I can use to explain why I call them vulture capitalists. When these people say the government should be run like a business, this is exactly what they mean. Their plan for government is to strip the assets, pay the money to themselves, and leave the rest of us to pay for the bankruptcy.

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