They are full of sh!t because these problems weren't a big secret in business circles -- but none of these dopes said a damn thing about it until after the company shut down.
“They are full of sh!t because these problems weren’t a big secret in business circles — but none of these dopes said a damn thing about it until after the company shut down.”
Any time a public company is purchased by private equity firm(s) the first thing that happens is the assets are stripped and the company is loaded with debt. The owned real estate assets are spun off into a separate company that then charges the leveraged company high rents. The acquired company is also charged high management and consulting fees by the private equity owner. Almost all of the big retail private equity deals over the past 25 years have ended up in bankruptcy and liquidation. Major creditors and insiders know months before filing the company is approaching insolvency and about to go down. In fact suppliers often tilt the scales and force the bankruptcy filing when they reduce the amount of the retailer’s credit line or even require cash up front before shipment of goods.
The noise of the politicians is simply pandering to the public with respect to actions they will never take. After all, this is an election year and behind the scenes they are seeking campaign contributions from the same companies and executives they publicly bash. The faux outrage is all posturing and no laws will be changed. Any little guy who believes these loudmouth politicians are looking after them is a complete fool.