Comment on How vulture capitalists ate Sears

How vulture capitalists ate Sears

Sears, the iconic American retailer, filed for Chapter 11 bankruptcy on Monday. Many analysts are treating Sears' fall as a cautionary tale about imprudent borrowing and failures to adapt — particularly in the face of e-commerce and rivals like Amazon. There is obviously a lot of truth in this. But there's another piece of the narrative that deserves just as much attention: how Sears was stripped for parts by a Wall Street hedge fund. If you track the long-term course of Sears' revenue and stock price, the problems didn't just set in with the arrival of Walmart and the big-box stores, or with Amazon and the rise of the internet economy.

 

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