

The Simmons Story: Profits for Buyout Firms as Company Debt Soared - UsNThem
http://www.nytimes.com/2009/10/05/business/economy/05simmons.html?hp

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yummyfajitas
This article reads like FUD aimed at private equity.

Private equity bought Simmons and did pretty well. During boom times, their
management helped the company increase sales and market share. They funded
this with debt at low interest rates. Then the economy tanked and no one buys
mattresses.

The private equity fund barely recouped their investment (and probably
underperformed the market) and the company is going bankrupt. Bondholders are
also screwed, as are employees.

Um, yeah. The economy sucks. Private equity buys companies, some of which do
badly. So what?

