Craft Industry Alliance Special Episode: Megan Greenwell on Private Equity
12 snips
Jul 24, 2025 
Megan Greenwell, a seasoned journalist with bylines in The New York Times and author of 'Bad Company: Private Equity and the Death of the American Dream,' dives into the troubling world of private equity. She unpacks how these firms' profit-driven motives threaten businesses like Joann, leading to instability and community harm. The discussion also sheds light on the surge of crafting during the pandemic and critiques the oversimplified narratives around retail bankruptcies, urging deeper understanding of financial forces shaping the industry.
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Episode notes
Megan's Deadspin Private Equity Story
- Megan Greenwell experienced private equity ownership directly when her online sports publication Deadspin was bought in 2019.
- The management cut profitable content and caused her to leave after three months due to harmful decisions.
Private Equity's Perverse Incentives
- Private equity priorities often conflict with healthy business management.
- They can profit by harming companies rather than improving them, like stripping assets.
How Private Equity Operates
- Private equity uses leveraged buyouts with 70-80% debt to buy companies.
- The debt is repaid by the company, while firms profit regardless, often by extracting assets.
