As the economy weakens and credit markets remain tight, we're seeing examples everywhere of private equity players under pressure as their boom-time buy-outs turn sour. I thought some interesting examples include Linens N' Things, purchased by Apollo back in 2006 for $1.3bn. A second rate player in what hindsight shows to be clearly the wrong business space, Linens N' Things is currently being liquidated. Even senior noteholders of the company are expected to suffer about a 70% haircut. Less senior creditors will probably do much worse. And Apollo's equity investment? Well unless I am missing something, they've been wiped out.