Home Retailer Expected to File For Bankruptcy

Private equity groups have been seduced by the myth of low hanging fruit.  From Montgomery Ward to Toys R Us to Linens N Things, the common denominator is an unfounded belief that acquisition costs can be paid for through immediate profit improvements.  Flawed business models are the common denominator for most of these companies.  And flawed business models do not generate quick and...

Private Equity Firms;  the squeeze is just beginning.  Overpaying, loading companies with debt with little financial risk investment from private equity has been the norm for almost 10 years.  TIMES R CHANGING.  Banks have begun to reel back financing and companies cannot afford the heavy debt load.  Senior Executives (Baby Boomers) are retiring and CEO's are hard to find

This WSJ writer and many like him are raising big red flags about the fate of the retail industry. They are seizing upon the rash of retail bankruptcies as either further evidence of the severity of the depression or the tightening of customer purse strings, or both. However, not one business writer I have found is talking about the "elephant in the room". The elephant is simply the fact that...