I made a few bucks off this stock back when it was publicly traded, thanks to it being taken private. My guess is the private equity firm that bought it took on too much debt so as to goose returns. A sad end to a 40-year-old company. It would likely have survived as a public company without the additional debt. Big Lots is similarly cash strapped thanks to management feathering its own nest by doing large debt-fueled stock buybacks. The interest expense is now throttling the company’s margins.
Warren Buffet says private equity is a scam. So many stories of struggling chains going Chapter 11 soon after going private due to high debt repayment. Only the suits and lawyers make out in the deals.