I somewhat understand how a company in debt may be bought out, but how could another company add debt to buy them out? Does that debt happen before or after they take over the struggling company?
In: Economics
Toys R Us.
Profitable company. Sold to an equity clearinghouse. They invested nothing in the stores and took out loans (based on the stores’ profitability) until the company was upside down and then they declared bankruptcy.
There was nothing wrong with their stores or their markets. They just got raped for cash and left on the road.
Its a crack addict’s way of doing business and its completely legal and profitable.
dystopian.
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