In the Matter of Staples/Essendant, Inc., File No. 1810180 #00810

Submission Number:
00810
Commenter:
Ellen And Oskar Schmidt
State:
New York
Initiative Name:
In the Matter of Staples/Essendant, Inc., File No. 1810180
In the matter of consolidation and swallowing up businesses, Staples stands to go the way of others before. If private enterprise is built on competition, what sense does it make to eliminate competition? 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. Eventually the fund either sells the gutted company -- or, in the case of Toys R Us, closes it entirely, even though 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.1 Right now the Federal Trade Commission is taking public comment until the end of the month on Sycamore's attempt to merge Staples with another office supplier. If this merger goes through, investors in a private equity fund will have more power to reduce competition, close stores, and lay off workers. Sincerely yours, Ellen and Oskar Schmidt