Safeway, one of the many grocery chains our local union represents, was purchased by Albertsons in 2013. Albertsons is controlled by an investment group led by Cerberus Capital Management, a private equity firm. Albertsons is the second largest grocery chain in the country and is now the largest private-equity owned company in the United States, employing 275,000 people. As you can read in the attached report, we should all be concerned that a private equity firm now controls Safeway. Private equity’s track record is one of preying on companies, their workers, and retirees. Its typical model is to buy up corporations by borrowing money, then sell off the company’s assets to pay off debtors and earn profits, all the while cashing in through management fees. Often, the massive debt incurred to make these purchases causes the company to file for bankruptcy, but even there, the private equity firm walks away with profits, leaving everyone else-especially workers, communities, retirees, and lenders-holding the bag.
Private Equity Stakeholder Project Testimony: America for Sale? An Examination of the Practices of Private Funds
The Private Equity Stakeholder Project is a nonprofit organization that seeks to understand the impacts of private equity and other private funds investments on workers, communities, consumers and other stakeholders and lift up the voices of those stakeholders in pursuit of more just outcomes. While there are a variety of issues to raise regarding private funds investments, today we wish to focus on two specific issues: (1) the growing impact of private funds investments on the environment and climate change, and (2) the fluctuating numbers of jobs at private equity-backed companies cited by private equity industry groups.
The survey found that voters across party lines both disapprove of common approaches of private equity firms in taking over and running existing businesses. They also approve of measures to increase accountability, close loopholes, and protect workers, investors and the viability of target firms.
AFR Polling Memo: New Survey Shows Bipartisan Skepticism of Private Equity Tactics, Support for Reform
Voters support continued reform of Wall Street, and that conviction extends to the private equity industry, according to a new poll by Lake Research Partners and Chesapeake Beach Consulting. Majorities of Democrats, independents, and Republicans, oppose the predatory tactics of private equity industry, and support legislative proposals aimed at correcting its abuses.
New report revealing how in the last 10 years, a staggering 597,000 people working at retail companies owned by private equity firms and hedge funds have lost their jobs. An estimated additional 728,000 indirect jobs have been lost at suppliers and local businesses, meaning Wall Street’s gamble on retail has led to more than 1.3 million job losses in total.
“Private equity and hedge funds now wield enormous influence over the American economy, often with terrible consequences for workers and communities,” said Lisa Donner, executive director of Americans for Financial Reform. “We need effective rules of the road to stop predatory practices by these Wall Street giants.”
Briefing on Stop Wall Street Looting Act of 2019 will be at 3pm ET. To join call RSVP to Kyra Sadovi, firstname.lastname@example.org and dial (800) 230-1096 and ask for “Private Equity Legislation” conference call.
Over 15 major public interest groups have signed on to support the Stop Wall Street Looting Act of 2019, which was introduced today in the House and Senate.
The Stop Wall Street Looting Act would curb the worst abuses of Wall Street private equity executives by making them liable for damage they cause, protecting the interests of workers, preventing looting of target companies, and improving transparency for investors.
Private equity owns over a million U.S. apartment units. Tenants pay a price when corporate landlords buy their buildings. In some cases, private equity buyers have pushed out lower-income tenants – through rent hikes, eviction threats, and more – to flip buildings into high-rent properties to sell for big profits.