The idea that private equity backers are to blame for the demise of well-known retailers like Toys R Us, Payless and Claire’s is overblown, experts say, and the reality is that the companies fell into bankruptcy because they failed to adapt their business models to combat disruptive and technologically savvy competitors like Amazon.
“When you look at the retail business, there have been significant disruptors in the industry over the last 10 years,” Howard Berkower, a partner in the corporate practice of McCarter & English LLP, told Law360.