Toy Vey

“When a company sells itself to a private equity fund, it takes on a high-interest loan with hopes that the new owners will drive enough profit growth to pay off the debt. It’s like taking on a high-interest payday loan. When private equity buyouts go well, they can help a company cut operations costs to maximize profits. But if the company doesn’t trim down its debt, the financial burden “becomes so unsurmountable you can’t get yourself out of it.” Buzzfeed’s Leticia Miranda on who stands to lose the most when private equity firms take over companies like Toys R Us. This is What Happened When Wall Street Tried Selling Toys.

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