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There were 52 PE-backed bankruptcies in the first half of 2025

By Mark Huffman of ConsumerAffairs

• Private equity-backed bankruptcies are on the rise: In the first half of 2025, 52 private-equity or venture-capital-backed companies filed for bankruptcy.

• Debt-heavy buyouts heighten risk: Private equity firms often use leveraged buyouts (LBOs) that saddle acquired companies with large debts.

• Outcomes depend on management and strategy: Experts like Stephen Shipe note that private equity isnt inherently harmful the results hinge on how deals are structured and managed.

Consumers are often dismayed when their favorite retailer or restaurant chain files for bankruptcy and goes out of business. Lately, there seems to be a trend among these bankruptcies many of the businesses are owned by private equity or venture capital firms.

S&P Global reports that in the first half of 2025, 52 companies backed by private-equity and venture-capital firms filed for bankruptcy protection. During that same period, a total of 371 U.S. corporations filed for bankruptcy, meaning 14% of the total were owned or backed by private equity. In all of 2024, the share was 16%.

Private equity firms can play a significant role in both the growth and the eventual bankruptcy of businesses they acquire. Their impact depends on how they structure deals, manage debt, and operate the company after acquisition.

Heres a breakdown of how that influence works:

PE firms typically use leveraged buyouts (LBOs) buying a company using a mix of their own capital and large amounts of debt. The company being acquired, not the PE firm, usually takes on the debt. This means the business must now generate enough cash flow to service new interest and loan payments.

• Before acquisition: The company may have had moderate debt and steady profits.

• After acquisition: The company faces heavy leverage, sometimes several times its annual earnings.

This structure can magnify returns for the PE firm if the company performs well but it also greatly increases the risk of bankruptcy if earnings fall or interest rates rise.

The role of debt

Stephan Shipe, a professor of finance at Wake Forest University and founder of Scholar Financial Advising, doesnt think private equity involvement is a direct catalyst for business failure, saying it all comes back to management.

The biggest risks come when firms load companies with debt, Shipe told ConsumerAffairs. Thats when you start to hear the horror stories. If the firm uses the companys cash flow to service new debt or fund distributions back to investors, it can quickly become unsustainable Toys R Us is the classic example.

On March 17, 2005, a consortium of Bain Capital Partners LLC, Kohlberg Kravis Roberts (KKR) and Vornado Realty Trust announced a $6.6 billion leveraged buyout of the company. The retailer filed for bankruptcy in September 2017.

But there are cases where private equity adds real value, too. If they specialize in the industry, they can bring economies of scale, better processes, and proven systems that help the company grow. The outcome depends on how its managed, Shipe said.

Some critics argue that several private equity tactics, while intended to improve efficiency or extract value, can unintentionally or sometimes predictably push companies toward insolvency. If the acquired company borrows too much money, it reduces financial flexibility. Even a mild downturn loss of a key client, supply chain shock, or higher borrowing costs can make the company unable to meet payments.

Increasing the risk

In 2019, Institutional Investor reported that healthy companies acquired by private equity firms through leveraged buyouts see their probability of defaulting on loans increase tenfold, citing research conducted at California Polytechnic State University. The researchers found that roughly 20% of large companies acquired through leveraged buyouts go bankrupt within ten years, as compared to a control groups bankruptcy rate of 2% during the same time period.

In addition to retailers, healthcare companies have also been acquired by private equity firms in recent years, with unsuccessful results.

• Envision Healthcare was acquired in 2018 and declared bankruptcy five years later.

• Akumin, a national outpatient radiology and oncology services company, declared bankruptcy in 2023.

• Steward Health Care declared bankruptcy in 2024.

While the trend is concerning, it should be noted that not all private equity involvement is destructive. When firms reduce inefficiencies responsibly, provide strategic guidance and capital, and focus on long-term growth rather than quick extraction, the results can be good for both the company and consumers.

The walk-iin delivery van was sold through Chevrolet dealers but never caught on in the marketplace

If you were waiting to buy a GMBrightDrop electric delivery van, you can stop waiting. General Motors is pulling the plug on the van, citing slow sales and a general lack of interest. s at the CAMI Assembly plant in Ingersoll, leaving the future of the southwestern Ontario facility uncertain.

"These Bright Drop vans are a specialized electric delivery van for commercial customers and, quite simply, we just have not seen demand for these vehicles climb to the levels that we initially anticipated," said Kristian Aquilina, GM Canada's president and managing director. "This has nothing to do with tariffs or trade. It's simply a demand and a market-driven response."

The vans have been manufactured in Ontario, Canada, and the decisioncame as a major blow to the 1,200 workers at the plant, many of whom have been laid off since the spring.

"This news was devastating for all of us, especially for the membership of our local," said Mike Van Boekel, president of Unifor Local 88, in a letter to its members. "Weve shown up for every ask, every time. And now, to be met with this short-sighted decision is frustrating and disheartening."

GM emphasized that Canada remains central to its North American operations, highlighting ongoing production in Oshawa and St. Catharines, as well as a new $600-million battery-materials facility under construction in Bcancour, Que.

Never became airborne

BrightDrop was introduced at the Consumer Electronics Show in January 2021. In 2023, BrightDrop was integrated into GM Envolve, the companys fleet business, which serves thousands of commercial and government customers.

The Chevrolet BrightDrop 400 and 600 will continue to feature state-of-the-art technology designed to help enhance efficiency, reduce tailpipe emissions, and optimize service and delivery operations, said Sandor Piszar, vice president, GM Envolve. Integration into the Chevrolet portfolio will expand its reach and accessibility and offer more customers additional tools to help achieve their productivity and carbon-neutral goals.

Holiday meal magic: One-click simplicity, big brands, and small price

• Walmarts 2025 Thanksgiving meal bundle serves 10 people for less than $4 per person.

• The bundle includes over 20 items turkey, sides, dessert ingredients featuring national and private-brand favorites.

• The offer is easy to grab online or in-store with convenient pickup/delivery options to take the stress out of holiday prep.

Holiday hosting can feel like running a marathon: stockings to hang, dishes to prep, and a budget that somehow balloons faster than the gravy boat.

Thats where Walmart steps in with a straw-saver of a deal: its annual Thanksgiving meal bundle for 2025 is back and its better (and more affordable) than ever.

Whether youre feeding family, friends or friends-giving, this one-click solution gives you a classic Thanksgiving spread without the typical stress or sticker-shock.

We know every dollar and minute counts which is why we are offering a low priced, one-click Thanksgiving Meal Basket featuring iconic brands like Butterball and Stove Top alongside trusted Walmart private brand items, Walmarts President and CEO John Furner said in a news release.

We wantevery family to be able to share a meal and celebrate without compromising on quality, quantity ortradition.

The details: Whats in the bundle & how much it costs

Heres the lowdown: this year the bundle is priced at $39.92 (serving 10 people under $4 per person) according to the online Thanksgiving Value Meal listing. It includes the following items (while supplies last, and availability may vary):

• Butterball Turkey (10-16 lbs): $13.14

• Fresh Cranberries, 12 oz bag: $1.42

• Fresh Whole Russet Potatoes, 5 lb. bag: $3.27

• Great Value Brown Gravy Mix: $0.32/each (two required)

• Great Value Golden Sweet Whole Kernel Corn, 15 oz: $0.50/each (three required)

• Fresh Baby-Cut Carrots, 2 lb. bag: $1.82

• Great Value Cut Green Beans, 14.5 oz can: $0.50/each (three required)

• Campbells Condensed Cream of Mushroom Soup, 10.5 oz can: $1.00

• Kinders Crispy Fried Onion: $2.97

• Great Value Artisan Crafted Macaroni and Cheese: $1.47/each (three required)

• Stove Top Turkey Stuffing Mix, 2-count: $3.64

• Great Value Brown and Serve White Dinner Rolls, 12-count: $1.38

• Great Value Frozen Traditional Pie Crusts, Two 9-inch Pie Crust & Pans: $1.87

• Great Value 100% Pure Pumpkin, 15 oz: $1.16

• Great Value Evaporated Milk, 12 oz: $1.00

Youre getting a full spread turkey, vegetable sides, mac and cheese, dessert-friendly ingredients all for around $40.

And it doesnt stop there. Walmart is offering extra bundle options this year: a gluten-free meal basket, a balanced-swaps basket (more protein, healthier sides), and a prime-rib meal basket for a more upscale twist.

To make it even easier: you can shop online or in store, pick up your basket with adhesive simplicity, or even have it delivered and if youre a first-time Pickup & Delivery customer you may qualify for free express delivery.

Respondents to a recent survey say they have the days off, but many dont feel safe using them

• Nearly one in four U.S. workers (23%) didnt take a single vacation day last year, even though most have paid time off.

• Although 82 % of workers report having PTO, many use very little: 42% took just 1-10 days off and only 18% took more than 15 days.

• The top reasons for skipping time off include heavy workload (43%), feeling they dont have enough PTO (34%), fear of falling behind (30%) and guilt/pressure to stay committed (29%).

It sounds almost paradoxical: many employees have paid time off (PTO) built into their jobs, yet a recent survey shows a surprisingly large share of workers arent using it.

According to FlexJobs Work & PTO Pressure Report, nearly one in four U.S. workers 23% didnt take a single vacation day in the past year. That means even when you have paid time off on paper, actually taking it (and feeling comfortable doing so) can be a different story.

If youre a consumer simply trying to rest and recharge, these findings are worth knowing: they hint at how work culture, workload and policy-vs-practice gaps play a big role in whether your PTO ever really becomes time off.

Most employees have some form of paid time off, but theres a big difference between a company that offers this benefit and one that actually encourages workers to use it, Toni Frana, Career Expert Manager at FlexJobs, said in a news release.

Without a company culture that supports rest, many workers feel they cant really step away without risking their professional reputation.

The survey

The survey behind these findings was conducted by FlexJobs between August 18 and August 31, 2025, with 3,063 U.S. respondents.

The respondents reflect a cross-section of workers who report whether they have PTO, how many days they actually take, and the attitudes/cultural pressures around taking time off. The report also breaks down types of PTO policies (accrued, fixed, unlimited, etc.) and links them to how much time people take.

While the survey gives helpful data points, keep in mind its self-reported (so perceptions of support, encouragement or discouragement around time off factor in).

The goal: to highlight the gap between having PTO and using it.

Major findings

One of the starkest facts: 23% of respondents took zero vacation days in the past year.

Meanwhile, although 82% say they have PTO, many take only a handful of days: 21% took one to five days; another 21% took six to 10; 17 % took about 11-15; only 18 % took more than 15 days.

In other words, just because PTO is offered doesnt automatically mean youll use it or feel you can use it.

The survey also breaks down types of PTO policies: 42% of workers say they have an accrued PTO system; 17% a fixed-day model; 12% a use-it-or-lose-it policy; 11% unlimited PTO; and 18% say they have no PTO at all.

And the reasons for not taking time off? Top answers include:

• A workload too heavy to justify time away (43%)

• Insufficient PTO (34%)

• Fear of falling behind (30%)

• Feeling guilty or pressured to show commitment (29%)

• Employer being unclear or not supportive of taking leave (19%)
  

What does this mean for workers?

First: check not just whether you have PTO, but whether you feel genuinely able to use it. If your team culture, manager expectations, or workload make it tricky to take a week away, that benefit is less valuable.

Second: taking little or no time off may contribute to burnout, lower job satisfaction, or decreased wellbeing. The survey underscores that rest isnt just a perk its a genuine part of work-life balance.

Third: if youre job-hunting or negotiating job offers, look beyond PTO included and ask: How does the company treat time off in practice? Are people encouraged to unplug? Will their absence lead to extra pressure when they return? The survey suggests the difference between PTO policy and PTO practice really matters.

Beat surveillance pricing at checkoutheres how to protect your wallet

• Heavy users may get fewer Starbucks promosWaPo found purchase frequency correlated with thinner offers
• Starbucks says it doesnt change menu prices per person, but does personalize deals based on your history (i.e., willingness to pay)
• Protect yourself: compare prices logged-out/incognito, rotate loyalty/payment, and limit app tracking before you buy

Have you ever worried if scanning your loyalty card was a good idea? Are you giving up too much of your data and buying history? Interestingly, new evidence suggests that your gut instinct might be right.

A recent deep-dive by The Washington Posts Geoffrey A. Fowler into his own Starbucks Rewards data showed that the more frequently he bought, the fewer promotions he received.

Starbucks responded by saying it doesnt set individual prices based on behavior, but it does use inferences from your purchase history to personalize offers. In plain English this means that two people can buy the same $7 latte, and one will pay $4 with a targeted offer while the other pays full price.

The conclusion here is much bigger than just coffee. Modern loyalty programs increasingly run on AI and personal data, and they can be used to sort shoppers by willingness to pay. That can mean fewer or smaller discounts for the most reliable customers, the opposite of what loyalty should actually mean.

What Starbucks says

While Starbucks told The Post it doesnt adjust per-person menu prices, it does indeed tailor promotions based on your preferences and purchase history.

In other words, if you stop at Starbucks regularly, you start to look like a sure thing so why would they waste discounts and purchase incentives on you.

But they did not clarify whether heavier purchasers are intentionally shown fewer deals.

How to fight surveillance pricing (without giving up savings)

You shouldnt have to choose between your budget and your privacy. To that end, here are some practical steps to make sure youre not being messed with:

Run a no-login price check. Before you buy, compare the price (and available promos) while logged in vs. logged out, in a private/incognito browser, and on the retailers public website vs. the app. If the logged-out or first-time session shows a better promo, grab it.

Rotate your loyalty. Dont be too predictable. If you always buy at the same time/place, algorithms may learn youll pay full price. Mix in competitors and cash purchases so youre not typecast as inelastic.

Change-up your payment patterns. Scan for stars, but then pay with a different card or mobile wallet that isnt saved in your Starbucks account. Youll still earn your Stars, but you wont tie every card transaction to your rewards profile.

Limit app permissions. Turn off location access, Bluetooth, and ad tracking in your phone settings. Decline cross-app tracking and disable in-app personalized ads where possible.

Hunt general public deals first. Before you scan a loyalty barcode, check for published deals (in-app Offers, store email, or coupon sites). If a targeted promo doesnt appear for you, a public code may level the field.