Are Private Equity Firms Bad for Food Companies?

6a00e55029641d88340120a57da668970c-800wi 6a00e55029641d88340120a526dc92970b-800wiJust read in the New York Post that Nonni’s cookies might buy Stella D’oro cookies. Never heard of these cookies before, even if these names sound suspiciously Italian. Nonni’s is owned by a Greek private equity firm and Stella D’oro by a private equity firm, in Connecticut. If Stella D’Oro doesn’t find a buyer, they will close because its workers have been on strike for over a year. Were the cookies so bad? Just kidding! (If you care to try them, they are sold on Amazon, in the grocery dept. They are indeed very cheap: our Di Ciaccio cookies cost 6 times as much.) This story sounds very similar to Balducci’s, also owned by a private equity firm, which went under earlier this year. (See our post about Balducci’s) Is there something wrong with these firms? Are is it just bad luck?

 

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