Private Equity’s Role In Retail Has Killed 1.3 Million Jobs, Study Says
by MR Magazine Staff
Jul 25, 2019
She’s been looking for more than a year, but Giovanna De La Rosa has yet to find a job. After 20 years with Toys R Us in San Diego, she was one of 33,000 workers laid off last summer when the company filed for bankruptcy and liquidated its stores. The retailer, which in 2017 had $11.5 billion in annual sales, had struggled to pay down billions of dollars in debt stemming from a 2005 leveraged buyout. “It’s been really, really tough,” said De La Rosa, 39, who has a son with autism. “Losing my health insurance has been a big deal.” Read more at The Wall Street Journal.
It is obvious what happens- be it Toys ‘r Us or Neiman Marcus. The people who broker these transactions
are the only ones who make money off the deals. They give no consideration to the thousands of people
who lose their jobs because of the ridiculous debt that is placed on these stores.