“Drawing on lessons from other PE-owned companies facing financial distress—like Nine West, J. Crew, and Sears—KKR will likely emerge unscathed by dividing Envision into two companies, one with the valuable assets and the second with the remaining assets. For example, after the leveraged buyout of Nine West, Sycamore Partners immediately moved the most valuable brands out of the reach of creditors, leaving all of the original debt on Nine West. It paid itself a $40 million dividend, sold the better brands, and pocketed the proceeds. Nine West, meanwhile,
filed for bankruptcy in 2018, laid off its workers, and closed all its stores.”
So easy to make tens of millions of dollars with no risk and very little effort, while I’m sitting here with an ASA 4 and post call.
My kids are going into finance.