Over the past few years, private equity funds have purchased many brick-and-mortar companies. But there's a problem: soaring energy prices.

Just look at Jevic Transportation, which has filed for bankruptcy. The trucking company was bought out by Sun Capital in July 2006.

Actually, the shut-down was not just the result of high fuel costs. Other problems included tough credit markets and increased insurance costs. Oh, and the slowing economy didn't help.

Unfortunately, Jevic had to lay off about 90% of its 1,500 employees (of which 1,000 were from Burlington County, New Jersey). The company got its start 27 years ago from a husband-and-wife team, Harry and Karen Muhlschlegel.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

Soaring energy prices hit private equity, too originally appeared on BloggingStocks on Thu, 22 May 2008 16:34:00 EST. Please see our terms for use of feeds.

Lately, it's been tough for furniture retailers. After all, Wickes Furniture, owned by private equity operator Sun Capital Partners, recently filed for Chapter 11 bankruptcy.

So, this might dampen interest in the sector? Perhaps not. Interestingly enough, Sun Capital wants to make a bid for Furniture Brands International (NYSE: FBN). Keep in mind that the fund is the #3 shareholder in the company (a 9.4% equity stake). The offer is a bit vague though as it is a "substantial premium."

Jason Bernzweig, the vice president at Sun, has sent a letter to Furniture Brands. Simply put, he thinks that - given the tough macroeconomic environment - the company needs to take aggressive action on cost cutting. To this end, he thinks this can be best accomplished as a private company (where there is less pressure to take short-term actions).

Bernzweig also mentioned that there is buyout interest from two strategic players.

In other words, there's lots of pressure on Furniture Brands to do a deal - and fast.

In today's trading, the company's stock price is up 20% to $12.48.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates DealProfiles.com.

Sun shines on Furniture Brands originally appeared on BloggingStocks on Thu, 21 Feb 2008 14:54:00 EST. Please see our terms for use of feeds.