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 3 months ago by MicroWave to c/economics
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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] 9 points 3 months 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.

[–] RangerJosie 8 points 3 months ago

Perfect analogy.

They're leeches.

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

[–] [email protected] 2 points 3 months ago (1 children)

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

[–] pdxfed 1 points 3 months ago

Thanks Taibbi