Kmart, Sears, Payless, Toys R Us. Remember them? So why have they disappeared? Private equity. From Red Lobster and nursing homes to apartment complexes. Here's what happens. Private equity [firms] buy the outfit, load it up with debt, strip out the assets and suck money out of it until it collapses. Then after thousands and thousands of workers get laid off, and after pensions get raided, after stores close and weeds are growing up in the parking lot, those private equity outfits walk away with their pockets stuffed with cash. (00:14–00:25)
CLAIM
Asserts that private equity firms financially burden companies, deplete their assets, and profit until the companies fail.
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