Geoffrey Died, The Autopsy to Read To Duck Ch9 Bankruptcy

Private Equity Firms are DESTROYING American Businesses they same way they bankrupted Toys “R” Us and put them out of business

Here’s how they did it

– After signing for Toys “R” Us, they sold all of the land under every store they own in the United States

– Private Equity sold it to their sister firms that they also own, their real estate investment trust

– They sell the land to themselves for cheap and then lease the land back to Toys”R”Us for expensive rates

– So now Toys”R”Us has a lease they didn’t have when they were still successful

– So next private equity went to look at all Toys”R”Us’ warehouses where they have backstock that carries them over in economic downturn. They began to sell that to a liquidator, all of the extra stock

– Next private equity sold all the Toys”R”Us’ warehouses, to their own real estate investment firms

– Private equity now leases back all of the infrastructure Toys”R”Us had built over the last 100 years to become the successful powerhouse it was

“They decimated Toys”R”Us in literally 2 years. At the end of this, Toys”R”Us can no longer make their payments to the bank, so they’re going to have to file bankruptcy. 

And then what’s going to happen is all of the assets that Toys R Us had left, which is largely only the intellectual property at this point, we’re going to have a fire sale. And you know who’s going to buy it for pennies on the dollar? One of our sister private equity firms. And they’re going to get the intellectual property, then we’re going to sell that to Macy’s to use, and then we’re going to go buy Macy’s and we’re going to start over again.”

This happens to business after business in America and it must be stopped.