Jerrold Bregman Speaks to The Financial Times About Private Equity-Backed Companies Filing for Bankruptcy
Jerrold Bregman recently spoke to The Financial Times about the financial difficulties private equity-backed companies have been experiencing and the wave of bankruptcies that have arisen as a result. Specifically, the article examines why 110 private equity and venture capital-backed companies have filed for bankruptcy in the last year.
The article highlights how the debt that some of these companies are burdened with and the current interest rates are major factors causing the rise in insolvency, noting that some companies then use bankruptcy to provide debt relief, to varying degrees of success.
“The tide has gone out, and a lot of boats are rocking over,” Jerrold shares with The Financial Times in response to companies like craft retailer Joann going in and out of bankruptcy after being acquired by a private equity firm. He continues to describe the aims of PE firms backing commercial businesses, stating that “Typically, all they’re looking to do is get to a liquidity event and make some money.”
Read the full article in The Financial Times below.