this post was submitted on 09 Sep 2024
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Economics

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Big Lots files for bankruptcy protection, sells to private equity firm as it promises to keep offering 'extreme bargains' (www.cnbc.com)
submitted 1 month ago by [email protected] to c/[email protected]
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  • Big Lots filed for bankruptcy protection, citing stubborn inflation, high interest rates and a slowdown in consumer spending on home goods such as furniture and decor.
  • Private equity firm Nexus Capital Management has agreed to buy Big Lots for $760 million, consisting of $2.5 million in cash plus its remaining debt.
  • The home goods sector has been under pressure over the last two years after demand surged during the Covid-19 pandemic.
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[–] [email protected] 27 points 1 month ago (1 children)

Yeah. Selling to private equity decidedly kills the idea of "extreme bargains"

They will milk the brand for all they can as fast as they can for as long as they can then part it out and sell it off. They're vultures.

[–] [email protected] 9 points 1 month ago (2 children)

When does private equity actually add value these days? I can only recall them as some sort of nebulous vampiric entity that sucks up value.

[–] [email protected] 8 points 1 month ago

Perfect analogy.

They're leeches.

Company gets in trouble. They buy it for cheap. Suck it dry. Discard the corpse.

[–] Tramort 2 points 1 month ago (1 children)

They are the vampire squid wrapped around the head of the American economy, repeatedly thrusting their blood funnel into its face.

[–] [email protected] 1 points 1 month ago

Thanks Taibbi