Morrisons, Asda Face High Cost of Their Debt-Fueled Buyouts
- Private equity-backed supermarkets suffer as shoppers cut back
- Higher debt costs add to list of headaches for grocers
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When the UK supermarket chains Asda and Morrisons were taken over last year, their private equity buyers took the typical step of piling them with debt. Now, that burden is becoming increasingly heavy as soaring inflation squeezes incomes, shoppers tighten their belts and borrowing costs soar.