Oh look, speaking of debt: guess who's leveraging the farm?
Private equity, the new source of "growth" (in prices, not production)
https://pestakeholder.org/news/new-report-reveals-growing-threat-of-private-equity-in-us-food-production/
Private equity, the new source of "growth" (in prices, not production)
https://pestakeholder.org/news/new-report-reveals-growing-threat-of-private-equity-in-us-food-production/
Comments
Walgreens is being bought by private equity, using 83% debt (leverage). Only 17% of the purchase price is their own money. Walgreens outlets pay the debt from their revenues. They'll close "non-profitable" ones (in poorer neighbourhoods).
https://pestakeholder.org/news/sycamore-partners-to-finance-walgreens-buyout-with-83-debt/
The "close unprofitable stores" is the private equity playbook, in retail, restos, childcare, health.
Reduces access, erodes quality, jacks up prices.
Regulate it!