Over the past 20 years, private equity firms and hedge funds have bought over 80 major retailers
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Question:
Over the past 20 years, private equity firms and hedge funds have bought over 80 major retailers in the US and Canada. The chains they own employ more than 1 million of the 15.8 million U.S. retail workers. At the same time, a large share of these private-equity-owned retailers went bankrupt, and they account for about 70% of store closings in 2019.
Why have private equity firms bought so many retailers? Why private-equity owned retailers are more likely to file for bankruptcy? (10 points)
Expert Answer:
Private equity firms have bought many retailers for several reasons 1 Profit Potential Private equity firms are attracted to the potential for significant profits By acquiring retailers they aim to im... View the full answer
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