Private Equity Investments Collapse into Insolvency and Bankruptcy
Private equity, due to its high use of debt, has placed numerous companies in distressed positions. Also note that there is a bit of a crossover, where private equity buyout business and venture capital are playing in each other’s sandbox. For brevity, companies in distressed situations from 2024-2026 are mentioned here; other history is available upon request.
Glossary
Bankrupt: A legal process that allows a person, business, organization that cannot pay its debts. Most common bankruptcies are Chapter 11 (Reorganization), Chapter 13 (reorganization) and Chapter 7 (liquidation).
Debt-for-equity swap: A debt-for-equity swap is a transaction in which a lender (creditor) agrees to exchange debt that is owed to them for ownership (equity) in the borrower. Instead of being repaid in cash, the creditor becomes an owner.
Default: A default occurs when a borrower fails to meet the terms of a debt obligation. Most commonly, defaults occur when a borrower fails to meet the terms of the obligation.
House of debt: A house of debt is when private equity firms borrowed heavily to finance a leveraged buyout or other private equity transaction. A house of debt is a distressed debt situation when the portfolio company controlled by the private equity firm has so much debt that it cannot comfortably service or refinance it. In this situation the success of the company could either become a success or failure, but has not reached bankruptcy or an out-of-court debt exchange. Generally for our purposes a house of debt portfolio company has too much debt from the leveraged buyout, falling revenues or profits, rising interest rates or debt maturing soon with no easy refinancing available.
Liquidation: A liquidation is the process of selling a company's assets and using the proceeds to pay creditors, usually because the business can no longer continue operating. In a liquidation , a company typically ceases operations. In a liquidation generally secured creditors (banks with collateral) can paid first, while administrative expenses (lawyers, bankruptcy courts) get paid second, employees get paid third, unsecured creditors are paid fourth, while preferred and common shareholders are paid last.
Receivership: When an insurance company becomes financially impaired or insolvent, and a state insurance regulator steps in to take control anA receivership for an insurance company is a special legal process used by the insurer when it is either financially troubled or insolvent. Unlike most companies, insurance companies cannot file Chapter 11 bankruptcy. A receiver's job is to protect policyholders, preserve assets, evaluate the company's finances, rehabilitate or liquidate the insurer.
Reverse stock split: A reverse stock split is when a company reduces the number of shares outstanding while proportionately increasing the share price per share. A reverse stock split does not create any new value, it simply changes the arithematic of the share count and price. A form of stock manipulation, a reverse stock split is frequently performed to remain listed on either the Nasdaq or NYSE to remain listed and still have access to investor money.
Chapter 22, 33, etc.: A Chapter 22 is when a portfolio company files bankruptcy more than once, for instance a Chapter 22 bankruptcy would be a company that filed bankruptcy while a Chapter 33 would be a company that filed bankruptcy three times.
Company
Business/Sector
Private Equity & Debt Backers
Status
Year
Terraform Labs
Cryptocurrency
Galaxy Digital, Coinbase, Pantera, Crowd Ventures, Arrington XRP Capital, kenz Galaxy
Bankrupt
2024
TG Jones (WH Smith)-U.K.
Books, stationary, magazines, etc.
Modella Capital
House of debt
2026
TGI Fridays (UK)
Restaurant chain
Electra Private Equity
Bankrupt
2024
TGI Fridays (US)
Restaurant chain
Sentinel Capital Partners, TriArtisan Capital Partners
Bankrupt (sale-leaseback)
2024
Thames Water (UK)
Water utility
Macquarie, BlackRock, Apollo, Ontario Municipal, Superannuation Scheme, Infinity Invest, British Columbia Invest Mgmt, Hermes GPE, China Invest, Acquila GB, Stitching Pension
Default
2024
The Body Shop (UK)
Cosmetics
Aurelius Group
Bankrupt
2024
The Container Store
Retail (storage & organization)
Leonard Green & Partners
Bankrupt
2024
The Oaks Mall, Gainsville, Florida
Florida shopping mall
Brookfield Asset Management
Foreclosure
2024
The Original Factory Shop-U.K.
Discount retail
Modella Capital
Bankrupt
2026
Thrasio
Amazon aggregator
Advent, Silver Lake, BlackRock, Oaktree Capital, Morgan Stanley, Goldman Sachs, Credit Suisse, Peak 6, upper90, Harlan Capital, Corner Capital, Bain Capital, Jaws Ventures, Crosswork, Riverpark Ventures
Bankrupt
2024
Thrill Holdings
DTC commerce
Juggernaut Capital
Bankrupt
2025
Tijuana Flats
Restaurant chain
AUA Private Equity
Bankrupt
2024
TimberHP
Insulation manufacturing
Citi, BlackRock
Bankrupt
2025
Tosca Services
Packaging
Apax Partners
House of debt
2025
Town East Mall, Mesquite, Texas
Shopping mall
Brookfield Asset Management
Default
2024
Travelport (UK)
Travel tech
Siris Capital, Elliott
House of debt
2024
Tremont Chicago
Hotel real estate
Hotel Capital
Bankrupt
2024
Tricolor Holdings
Auto sales/financing
BlackRock, JPMorgan, Chase, Fifth Third Bank, Barclays
Bankrupt
2025
Trinitas Farming
Agriculture (almonds)
Trinitas Partners
Bankrupt
2024
Trinseo (fomerly Styron)
Chemical company carved out of Dow Chemical based in Wayne, PA
Bain Capital, Apollo Global, Oaktree Capital Management
Went into bankruptcy after dogfight with creditors
2026
Tropicana Brands
Juice products
PAI Partners, Pepsi
House of debt
2025
True Value Hardware
Hardware retail
ACON Investments
Bankrupt
2024
Typhoo Tea-U.K.
Consumer goods
Zetland Capital
Bankrupt
2024
U.S. Logistics
Freight brokerage
Ten Oaks Group
Bankrupt
2024
Unbound Group/Hotter Shoes-U.K.
Retail goods
Electra Private Equity
Bankrupt
2023
United Road Services
New vehicle and other logistic services
Charlesbank Capital, The Carlyle Group
Debt-for-equity
2023
United Site Services
Portable sanitation
Platinum, Blackstone, Ares
Bankrupt
2025
Upstream Rehabilitation
Physical therapy
Revelstoke Capital
House of debt
2025
Ursa Operating
Oil & gas
Terra Energy, Warburg Pincus
Bankrupt
2024
Vacasa
Vacation rentals
Silver Lake, TPG, Tiverwood, Level Equity, Davidson Kempner
House of debt (20- to 1 reverse split)
2025
VanMoof-Netherlands
Premium electric bicycles
Balderton Capital, Felix Capital, Norwest Venture Partners, HV Capital, Prosus Ventures, Y Combinator, TriplePoint Capital, Felicis Ventures
Bankrupt
2023
Vasco da Gama-Brazil
Professional football/soccer team
777 Partners
House of debt, default
2024
Veritas Technologies
Backup and storage software
The Carlyle Group
House of debt
2025
Vialto Partners
Tax/immigration consulting
Clayton, Dubilier & Rice
House of debt
2025
Vibrantz
Specialty chemicals
American Securities
House of debt
2025
Vice Media
Digital media
TPG, George Soros, others
Bankrupt
2023
View Glass
Smart glass tech
SoftBank, RXR, GE Capital, TIAA- Cref, Madrone Capital, DBL Partners, GIC, NZ Superfund, Sigma Partners
Bankrupt( 60-to -1 rev split)
2024
Village Roadshow
Film production
Vine Alt Investments
Bankrupt
2025
Virgin Galactic
Space travel
Richard Branson, Mubadala
House of debt
2025
Virgin Orbit
Space launch
Mubadala, Boeing, Richard Brandson/Virgin Group
Bankrupt
2023
Vista Credit Strategic Lending Corp (VCSL)
Business development company
Vista Equity Partners, Partners Capital, Swiss pension fund
House of debt
2026
Vitamin Shoppe
Retail
B. Riley Financial/Franchise Group
Bankrupt
2024
VoBev LLC
Aluminum cans
Ares Management
Bankrupt
2024
Volocopter GmbH-Germany
Air taxi startup
Daimler, Geely, BlackRock, btov
Bankrupt
2024
Vroom
Online auto sales
T. Rowe Price, General Catalyst, Allen & Co, Holman Growth, Pico Venture, L Catterton, Auto Nation
Bankrupt
2024
Vue Cinema (UK)
Movie theaters
Alberta Investment Mgmt.
Debt-for-equity
2024
Vyaire Medical
Respiratory devices
Apax, BlackRock
Bankrupt
2024
Wag Labs
Pet services app
SoftBank, General Catalyst, Sherpa, Freestyle Capital
Bankrupt
2025
Walker Edison
Furniture
Blackstone, Dominus Cap, Prospect hill, JW Childs, Hauser Private Equity
Bankrupt
2025
Wasington D.C. Real Estate
Portfolio of twelve office properties in Washington D.C.
Brookfield Asset Management
Default
2023
WaterStation Tech
Water systems
KeyBank, Jefferies, 352 Capital
Bankrupt
2024
Weaber Inc.
Lumber / millwork
Cyprium, Resilience Capital
Bankrupt
2025
Wefox (Germany)
Digital insurance
Mubadala, Deutsche Bank, UniCredit, Barclays, OMERS, Target Global, JP Morgan, Eurazeo Horizons, Jupiter, TA Associates
House of debt
2024
Wellful Inc.
Diet brands (Nutrisystem)
Kainos Capital
House of debt
2025
Wellness Pet
Pet food
Clearlake Capital
House of debt
2025
Wellpath Holdings
Prison healthcare
H.I.G. Capital
Bankrupt
2024
Wells Fargo Center-Denver
56 Story Building known as 'Cash Register Building'
Brookfield Asset Management, Fidelity, PIMCO, Western & Southern
Default
2023
Wells Fargo Center-Los Angeles
Downtown Los Angeles office building
Brookfield/Oaktree
Default
2025
Wesco Aircraft Holdings/Incora
Aerospace and defense supply chain company
Platinum Equity
Bankrupt
2023
West Marine
Aftermarket marine products
Monomoy Capital Partners, L Catterton, Oaktree Capital Management(Brookfield)
Bankrupt
2026
WeWork
Office space workspace
Softbank, Benchmark Capital, Fidelity, JPMorgan Chase, Goldman Sachs, T. Rowe Price, Wellington, Harvard Endowment, Hony Capital, Mortimer Zuckerman
Bankrupt
2023
Wheel Pros / Hoonigan
Auto aftermarket
Clearlake Capital
Bankrupt
2024
Wiggle/Chain Reaction Gym
Cycling retailer, gym chain
Bridgepoint, Rene Benko Signa Sports
Bankrupt
2023
Willis Tower (Chicago)
Commercial real estate
Blackstone
House of debt
2025
Wizard Manufacturing
Food processing equipment
ZJM Equity
Bankrupt
2024
Wolfspeed
Silicon carbide materials, light emitting diodes
Apollo Global Management
Bankrupt
2025
WOM (Chile)
Telecom
Novator Partners
Bankrupt
2024
WW International (Weight Watchers)
Diet / wellness
General Catalyst, Artal Group, Littlejohn & Co
Bankrupt
2025
XAI Holdings
Tech (X/Twitter + AI)
Elon Musk, BlackRock, Sequoia, Valor Equity, MGX, Fidelity, Baron Capital, Nvidia, Andreessen Horowitz
House of debt
2025
Yababa-Germany
Grocery delivery focused on Turkish & Middle Eastern foods
Creandum, Project A Ventures, Foodlabs
Bankrupt
2023
Yellow Corporation
Trucking/logistics
Apollo Global Mgmt, U.S. Government
Bankrupt
2023
YesCare/Tehum Care Services
Prison healthcare
BlueMountain Capital
Bankrupt (Chapter 22)
2026
Zapp-U.K.
Instant grocery delivery
Lightspeed Venture Partners, Atomico, 468 Capital, Broadlight Capital, Lewis Hamilton, TriplePoint Capital, 10X Capital, BAM Elevate
House of debt
2026
Zenith Automotive (UK)
EV leasing
Bridgepoint
House of debt
2025
Zips Car Wash
Car wash chain
Atlantic Street Capital, HPS Investment Partners
Bankrupt (sale-leaseback)
2025
Zymergen
Synthetic biology
SoftBank, DCVC, True Ventures, DFJ, Goldman Sachs, Hanwha Asset Mgmt, Two Sigma Ventures, Innovation Endeavors, Baillie Gifford, Iconiq Capital
Bankruptcy, liquidation
2023