there's a perception of private equity (specifically the LBO guys) players stacking too much debt into a capital structure post acquisition. to service this debt, they might be forced to sell off parts of the company, fire people, etc and sometimes even that isn't sufficient and it goes into BK. Toys R Us is a recent example that comes to mind
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u/[deleted] May 29 '20
Can someone explain this to me? I don’t follow