The private equity firm Apollo Management, which bought Carl's Jr. operator CKE Inc. two years ago, did what many such firms do: use these companies as credit cards and load them with debt.
According to your article, Apollo paid itself $190 million in dividends from CKE last year while cutting costs in part by stopping matching contributions to employees' 401(k) retirement accounts. Do you think the $190 million would have helped the CKE employees more than the executives at Apollo?
I am glad the initial public offering faltered. I have never been a customer and never will be.