PE continues to exist by gaming the system: As others on this thread have speculated, driving a company into bankruptcy can shed pension obligations and enable breaking other contracts, leases, etc. Hence the paradox of everyone having these seemingly very popular products while the company is "bankrupt." Bankruptcy is not a loss for PE, yet, anyway. Which is why there is a perverse incentive to "go bankrupt" in large measure due to LBO loans, while there is plenty of brand equity and other assets to propel future sales.