@lthlnkso: Did PE profit by destroying Toys R Us? I don’t think so. @Elizabeth Warren

Milky :

Unrelated but Lizzy been looking thick asf recently or Ami wylin?

neverbeento :

Buying a company with the intent of bankrupting it makes as much sense as the people who decline a raise to avoid paying more taxes

David Dyer425 :

Crazy how this dude always swings and misses

cjb :

Toys R Us was NOT in a good place back then. You could tell just by visiting a store that it was on it's last legs.

Michael Townsen Hicks :

private equity clearly makes companies less resilient against shocks and more prone to failure.

Lia :

My understanding of what some of what PE has done that’s caused destabilization of some of these companies is sell the real estate assets. So Red Lobster saw a decrease in sales over decades, but it owned the building and the land (sometimes in very lucrative locations) it sat on, which gave them assets and reduced overhead. But by selling the property to pay back initial investment, it increased overhead costs beyond the revenue from store sales. You did a pretty great job of explaining that it’s more complicated than PE did X, X = bankruptcy, but I also don’t see where PE added any value. They got into these businesses and then most people/entities seemed to lose money as a result. That seems like a problem worth solving.

zanderdoby319 :

The key takeaway is that Senator Warren isn't actually interested in solving problems. Not exactly new information.

James :

Hypothetically. If I, as a regular person, buy 6% of a tiny little company. A company worth say 100 grand. But 15 years go by and they are worth billions. But also billions in debt. They go bankrupt. Am I liable to pay it back under her bill?

turnermcat :

Good video but I’m not sure this is an accurate representation of the financial workings of a leveraged buyout. I do agree that the bill as written needs to be adjusted such that only firms with controlling interest, or even better a new definition of what a private equity firm is constituted as would be beneficial so that they do have more liability during the bankruptcy process

Pic rick :

TRUs went bankrupt bc they didn’t take advantage of online shopping

Erik :

I started buy all my kids toys on Amazon in 2012. I’m sure I wasn’t the only one.

999rosé_black🇻🇦 :

this is a bit of a misdirection. the claim is that the fund and fund managers benefit not the investors in the fund.

A :

its all a marvel movie for them, they have to "stop the bad guy" even if a building lands on people, for the sake of people. This doesn't benefit the people, will actively hurts them, but also hurts the (privately rich) bad guy, not the (publicly rich) hero.

heregoeswhere :

I worked for Toys from 06 to 08 and they were operating on a 90s mindset. Frustrated customers would walk out because the toys were marked up and the website sucked so why not just hit up eBay for the same price and no bs

Derek Keech725 :

Her whole career is based off this right here

clintobeans :

Ok, but Red Lobster.... absolutely was used as a debt cow and offloaded on.

Taylor_Smith :

Private equity is misunderstood. Vast majority of private equity firms attempt to grow and spin off the companies they invest in. They dismantle them as a last resort to limit their losses. It’s much more profitable to sell the company to another private equity firm or to IPO. Pretty much every major company of the last 40 years relied on private equity investment to grow and become successful.

Dr. McFluffin :

We have all of those stores except toysrus 😅

lauren01101101 :

Hi mall

steven hyde :

brandon :

Toysrus was ALWAYS overpriced.

Neochoriki :

Ty!

jon joe :

I’d like to know more examples of this. I’m hesitant to just believe that PE isn’t doing this still

strongwallthered :

why is the company who buys asset X being responsible for all debts owed by asset X a bad idea?

Xonass12 :

Are you conflating “fees” with principle repayments?