Both retailers' efforts to strike in dire need of overhals in order to stay in business. It seems, however, that these days it's not all that easy to sell a struggling business.with private equity firms are being followed closely by the retail real estate community as the chains are
The not secured firm committments for investment capital from companies he'd like to partner with on a Best Buy acquisition. According to the Post:Post reports that Best Buy founder Richard Schulze has still
While sources say Best Buy’s board could give Schulze another extension, the delays have raised worries that Schulze is facing intractable execs from private-equity shops who are demanding control of the retailer as a condition for signing onto a deal.
Meanwhile, in supermarket land, Cerberus Capital Management hasn't been able to secure the necessary capital to acquire the struggling Supervalu chain, leading to stalled buyout negotiations, according to Bloomberg .
Potential lenders are balking because they're concerned over how the Eden Prairie-based chain will manage the increased debt load as revenue shrinks, said the sources, who asked not to be named because the process is private. Lenders also are pressing Cerberus to put more money into the deal than the firm is willing to, another person said.