Reading a recent article by Bryce Covert about the demise of Toys “R” Us reminded me of other cases that ring similar bells about heavily indebted companies that went into bankruptcy like Hostess and American Airlines.
All said cases make me wonder what the place of private equity should be (see Covert’s article for some questions raised). And in case you want an argument for private equity much as it exists, listen to an interview with David Rubenstein of the Carlyle Group.