This practice is called cashing out brand equity and it’s a calculated move to increase profit margins despite damage to the brand.

The key here is that the brand itself does lose its power in the process. It’s a self correcting problem.

Indeed but only after the consumer has been shafted. If only the reputational damage passed transparently to the actual owners and people started to say “I’m never buying anything owned by XYX Private Equity Firm”