Why supermarkets are on private equity firms’ shopping lists | Michelle Meagher and Vivek Kotecha

The asset-stripping, debt-heavy industry has set its sights on stores like Asda and Morrisons. What’s really going on here?

British high streets have taken a battering over the past decade – first from online retail, then from the pandemic, and now from a combination of the two. What remains of the sector is being picked over by the investor of last resort: private equity. Morrisons is the latest acquisition target, the subject of a bidding war between three private equity firms. The sale may turn out to be only a temporary reprieve. Digging into the balance sheet of these investments exposes looming risks and hidden costs.

Related: Morrisons writes to reassure anxious UK farmers over US takeover

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from The Guardian https://ift.tt/3Bd6oKW