Ares Management

Simmons Mattress

Seven PE owners, two bankruptcies. PE extracted $750M in profits while debt went from $164M to $1.3B. The company still exists as a shell.

Bankrupt TWICE (2009 and 2023). Debt went from $164M to $1.9B.

Neiman Marcus

TPG/Warburg bought Neiman for $5.1B in 2005, piled on debt, sold to Ares/CDPQ for $6B in 2013 — the ultimate hot potato pass. Ares/CDPQ added MORE debt and extracted a $500M dividend. When luxury spending softened, $5B in debt was unsurvivable. Filed Chapter 11 in 2020. Emerged only to be merged into 'Saks Global,' which is itself now running out of cash. Three PE ownership cycles, one bankruptcy, and the debt mountain only grows.

Merged into 'Saks Global' with HBC/Brookfield (2025). Cash crisis. Vendors demanding COD.

Hertz Global Holdings

CD&R/Carlyle/Merrill took Hertz private for $15B in 2005 with $12.5B in debt — one of the most leveraged LBOs ever. IPO'd quickly but the debt remained. Filed Chapter 11 in 2020. Emerged under Knighthead/Certares in 2021 with an insane plan to buy 100,000 Teslas. The EV fleet was a disaster — maintenance costs 3x ICE vehicles, depreciation cratered. Sold the EVs at massive losses. Stock went from $35 (2021 peak) to under $3. The same company destroyed twice by leverage and hubris.

Stock crashed from $35 to $3 post-EV debacle. Second near-death cycle. Athena Technology and Bill Ackman taking stakes.