Clearlake-Backed Wheel Maker Files for Bankruptcy Protection
(Bloomberg) -- Wheel Pros, a maker of after-market specialty auto parts, filed for bankruptcy protection after struggling with inflation costs and a slump in demand.Most Read from BloombergHow Americans Voted Their Way Into a Housing CrisisWorld's Second T...
Not scientific, but I've noticed that there seems to be a trend with private equity. They take over a usually profitable company, generally at a premium, then they replace all the products with cheap crap, cut service to the bone, then milk the profits for about 3 years until the customers wise up.
Then they announce some sort of faux investment/restructuring and a year later, everyone's laid off and the company is in bankruptcy or sold for pennies on the dollar - a husk of what it once was.
That is just what happened with LL Flooring. It was "saved" by another private equity firm. That happened to Rite Aid recently too.
These smells of criminality
The fact that this business was closed during lockdowns is just part of the equation.