Earlier quoted context omitted.
Toys R Us and Guitar Center are among the retailers bought by private equity firms explicitly so the investors could wring the value out of the company and throw the remains in the dumpster. G.I. Joes was another. https://www.theatlantic.com/magazine/archive/2018/07/toys-r-... By the way the remnants of Toys R Us are now owned by Tru Toys and they are looking to make a comeback.
> so the investors could wring the value out of the company and throw the remains in the dumpster What does that mean in practice?
Buy the company with loans, strip the tangible assets for cash, burden the company with the loan repayments and bail out.
Basically use the company as leverage to buy it, and then make it pay for having been bought out. It will seldom be able to do so, and eventually will stagger into bankruptcy. Both the company and the creditors lose, but not the 'investors'.