Comment by musicale
9 hours ago
> Del Monte went out of business because there wasn't enough demand for the peaches
They appear to have gone out of business because of massive debt from a leveraged buyout, combined with other issues.
https://www.linkedin.com/pulse/when-private-equity-overcooke...
That doesn't change the fact that there isn't enough demand for canned peaches. If there were enough demand for peaches the farmers would sell the peaches, rather than destroy the peach trees.
The wholesale buyer is in bankruptcy, unable to pay the interest on debt inherited from the leveraged buyout.
Somebody really good at the economy needs to explain to me how a PE firm buys a company using the company it’s buying as collateral for that financing, and then somehow, that acquired company is the entity that debt is attached to.
Imagine if us poors could buy a Hummer EV financed against itself and then the truck had to self-drive for uber to pay its own payment, under penalty of being put in a crusher. Oh and you get paid by the thing for the privilege of being bought.