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TheToolman

Stupid Investors? Why is anyone still buying retailers from private equity firms?

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Just proves it, there is a sucker born to purchase your crap.

On March 9, 2017, private equity firm TowerBrook, the owner of women’s clothing retailer J. Jill, dumped half of its stake via an IPO at a price of $13 a share into the lap of the unsuspecting public, during a time when brick-and-mortar retailers that are owned by private equity firms are heading into bankruptcy court, one after the other.

By Wednesday at close, shares of J. Jill had dropped to just over $10. And then after-hours and today during regular trading, they plunged another 51% to $4.86!

Why are investors still buying brick-and-mortar retailers – or anything – from PE firms? No one knows. But inexplicably, it’s still happening.

By 8:31 PM on Wednesday, shareholder rights law firm Johnson Fistel announced that it is “investigating potential violations of the federal securities laws by J.Jill Inc. … and certain of its officers and directors.” It added, that the investigation “seeks to determine whether certain statements regarding J.Jill’s business and prospects were false and misleading when made.” Other class-action law firms will follow.

https://wolfstreet.com/2017/10/12/j-jill-pe-firm-pushes-retailer-into-brick-and-mortar-meltdown/

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