May
28
Private Equity Examines Its Distressed Navel
ByThere’s a fascinating exchange buried in Payless ShoeSource’s bankruptcy court documents, one that highlights the increasing ire over private equity firms’ involvement in distressed retailers.
Payless, remember, is the discount shoe retailer that became insolvent earlier this year after being the subject of a leveraged buyout in 2012. Now, suppliers and property owners that are owed money are clearly mad about how private equity firms directed Payless to borrow millions of dollars to pay themselves hefty dividends without improving the company’s viability.
These creditors want to hire an expert to evaluate how much those dividend payments ate into Payless’s value and doomed its fate…
Private Equity Examines Its Distressed Navel
