In the Matter of Staples/Essendant, Inc., File No. 1810180 #00311

Submission Number:
00311
Commenter:
Lori Vest
State:
California
Initiative Name:
In the Matter of Staples/Essendant, Inc., File No. 1810180
I am writing to express my opposition to the merger of Staples and Essendant. If this merger goes through, investors in a private equity fund will have more power to reduce competition, close stores, and lay off workers. Private equity funds allow the wealthy to pool their money to buy out profitable companies like Staples. The private equity fund then loads up the company with debt while slashing wages, benefits, and jobs, all to make more money for the wealthy investors. The fund eventually either sells the gutted company or closes it entirely. The company still makes money, even though thousands of workers lose their jobs. Sycamore Partners, the firm that owns Staples, has already shut down most Nine West stores and picked apart companies like Hot Topic and Aeropostale to try to extract as much value as possible. If this merger goes through it will be even tougher on workers and communities.