Asset stripping happens when someone buys a company to sell off its valuable parts. Think of it as buying a house only to tear it apart and sell the copper pipes, fancy fixtures, and anything else worth money. The buyer doesn't care about keeping the business running or helping employees keep their jobs. They want to make a quick profit from breaking things up and selling them piece by piece.
How Asset Stripping Works
Companies targeted for asset stripping usually have valuable assets but aren't doing well as businesses. Maybe they have expensive buildings, fancy equipment, or valuable brand names. The people doing the stripping figure out that these parts are worth more sold separately than keeping the whole company together. They...