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.
Leveraged buyout is insane and should be so very very illegal.
Let them leverage but they have to pay it back. None of this transfer the loan shit.
Agreed. If you can take a loss forward 20 years on your taxes, the government should be able to go after leveraged losses for 20 years too.
All we really need is to make sure the people investing in and making these decisions get financially destroyed