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Comment on Fairway Was Mismanaged and Looted by Private Equity

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Who is the victim here? The owners cashed out to buyers who were presumably the ones offering the best exit, the buyers funded the purchase with debt, and their longterm plan failed. The banks who lent the debt took the risk and believed in Sterling, which was a bad bet. It seems like everyone got what they deserved.

What is the alternative? Legally forcing owners not to sell? Preventing owners from trying to expand “too quickly”? Outlawing poor management? None of this is feasible.

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