Czech Billionaire Bets Big on Industries Other Investors Avoid

Across the U.S., sales are cratering, bankruptcies are on the rise, and unemployment has hit unprecedented levels. With consumers glued to the couch watching Netflix or commiserating over Zoom, retailers have been especially hard hit. Yet even as the coronavirus pandemic wreaks havoc on American malls and main streets, a billionaire from Prague sees something in the wreckage: bargains.

On May 11, Vesa Equity Investment, a private equity firm controlled by Daniel Kretinsky, a 44-year-old investor little known outside of finance circles, disclosed it had acquired a 5% stake in Macy’s Inc., the troubled department store chain that has seen its stock nose-dive by more than half this year. Then on May 18, Vesa said it had bought 6% of sneaker-seller Foot Locker Inc., whose shares are off by a quarter.