Thousands of profitable brink and mortar stores will close this year, mostly due to Hedge Fund predation. In a leveraged buyout, a hedge fund uses borrowed money to buy a company, then saddles that company with the debt. All of the acquired company's profit then goes to paying that debt, till it folds due to a balloon payment. The economy is stripmined, while hedge fund managers avoid taxes. This is what Free Market means, freedom of the richest to devour. Employees? Customers? Ha-ha, you are nothing to plutocrats!
6,800 chain stores are closing this year. It's true that online retailers and winner-take-alls like Walmart have delivered the coup de grace that finished off these stores, but the conditions that made them weak enough to kill are driven by Wall Street, not Walmart.
The common factor shared by the disparate struggling and bankrupt retailers -- Toys R Us, Claire's, Nordstrom's, Macy's, Sears, Penney's, Circuit City, Sports Authority, Payless, Radio Shack, etc -- is that they are saddled with crushing, inescapable debt that they took on when they were acquired by hedge funds that loaded the debt on as a way of stripmining the companies; also, they increasingly rely on predatory store-cards that can be used as cover for more financialization, debt-loading, and extraction by investors who profit even (especially) when their investments go bust.
Indeed, many of these companies are profitable, and some even experienced sales growth, even as they are circling the drain, because any dollar that comes in goes straight to debt service.
What's more, the structure of this debt is such that the payments these companies "owe" are about to balloon, guaranteeing the end of the line for them. [emphasis mine]
I haven't investigated that. It's my understanding hedge funds can target any company that has assets.