this post was submitted on 26 May 2024
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United States | News & Politics

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[–] snooggums@midwest.social 157 points 5 months ago (2 children)

You might think bankruptcy screws the hedge fund, but it doesn't. Bankruptcy lets them drop a bunch of debts and obligations caused by sucking all of the money out of the rest of the changes, so they get stuff and don't have to pay for a big chunk of it before they eventually offload it to some other company.

The whole thing is vulture capitalism.

[–] rdyoung@lemmy.world 54 points 5 months ago (1 children)

This is it right here and this scenario was most likely the plan from the outset, they planned on this and orchestrated it.

[–] EldritchFeminity@lemmy.blahaj.zone 52 points 5 months ago (2 children)

Isn't this exactly what happened to Toys R Us as well? Bought up by a hedge fund, saddled with millions of dollars of debt to funnel its value to the hedge fund, then bankrupted and sold off for a pittance, laundering all the profit and wiping the debt away like it was never there. All while putting tons of people out of work.

[–] misterdoctor@lemmy.world 8 points 5 months ago (1 children)

Aka rise of the planet of the apes

[–] lingh0e@sh.itjust.works 4 points 5 months ago (1 children)

I, for one, welcome our new Dr Zaus overlords.

[–] Klear@sh.itjust.works 3 points 5 months ago* (last edited 5 months ago)

I love you, Dr Zaius!

[–] ChapulinColorado@lemmy.world 6 points 5 months ago

Same thing happened (according to the original founders that sold the company) to Mervyn’s in the west coast.

[–] BakerBagel@midwest.social 10 points 5 months ago (1 children)

It's crazy how a corporate entity can own a company, sell off everything that makes it valuable, and then not pay a dime when said company inevitably goes bankrupt.

[–] snooggums@midwest.social 12 points 5 months ago (1 children)

Welfare, bankruptcy, and avoiding legal obligations are all apparently fine for corporations, but not people.

[–] nilloc@discuss.tchncs.de 2 points 5 months ago

Yet another reason corporations aren’t people. Unless you’re a fucking vulture like Romney (formerly of Bane [sic] Capital, who bankrupted Toys-R-Us).