Retailer woes signal looming tech debt trouble
Unable to pay private equity debt, US retailers are shutting their doors. Are tech companies next?
A surge in store closures, layoffs and bankruptcy fillings has swept the US retail sector, and the overwhelming majority of distressed firms were weighed down by private equity debt they couldn’t pay.
That trend may be a sign of things to come for tech firms, as private equity buyouts in the technology sector continue to climb, reports Bloomberg Gadfly.
If technology companies fail to produce expected earnings as they face a growing volume of debt maturities in the coming years, the risk of following in retailers’ footsteps will go up dramatically.