Sunday, April 13, 2008

S@%t Rolls Downhill
Linens n Things is preparing to file for bankruptcy. There are multiple Tenant in Common deals with Linens as a tenant. This chain was taken private by Apollo Management in early 2006. Linens was not the only retailer that was taken private by hedge funds or private equity firms. Toys R Us, Petco and others were bought during the era of cheap credit. I imagine the hedge funds and private equity firms leveraged the companies and paid themselves huge dividends. Now this leverage is leading to bankruptcy. I will watch how the bankruptcy impacts the TIC deals I saw.

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