Economy hitting portfolio companies of big private equity firms

As if private equity firms didn't have enough problems. Investment Dealers' Digest suggests that the rocky economy may be a problem for restaurant-chains, home furnishing companies and others whose fortunes are tied to the consumer economy. Linens Holding Co., owned by Apollo Global Management, recently asked its lenders for--and received--forbearance. Kohlberg Kravis Roberts' Sealy Corp., a maker of mattresses, may see problems as consumers restrain spending, the magazine notes. Moody's issued a negative outlook on the company, citing worsening economic conditions, among other things. Also, Sun Capital's Real Mex Restaurant chain was downgraded and hit with a negative outlook; it runs El Torito, Chevys Fresh Mex and Acapulco Mexican restaurants.  

For more:
- here's the article from Investment Dealers' Digest (for FierceFinance readers)

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