Are you suggesting that buying a struggling company that was losing relationships by the day and then setting fire to all the remaining relationships isn't a good business strategy?
In all seriousness, I've never entirely understood how it works and I'm somewhat simplifying things here, but there is a practice in business where you buy another business, burn it to the ground and then somehow profit over the loss. I assume it's in tax breaks and various losses you can put on your books. It's never made sense to me but it absolutely happens. Starting to look like this might be the case here.
It's similar, but not the same as when places like Bain Capital (hey Mitt!) buy up a company on a loan, then take out another loan in the new company's name, pay the original loan off and pocket some of the extra money and then saddle the company with a ton of debt, run it out of business into bankruptcy, killing the business, but making money themselves. That's what happened to both KB and TRU, which were both companies that could have survived but private equity companies intentionally ran them out of business to make money.
Gotta be something similar here but without the capital lending perhaps.