Private Equity-owned Companies in Times Square 

234 W 42^nd St.

Private Equity Owner: Wellspring Capital LLC

Owned by private equity since: March 2006

Deal Value: $375 million

Employees: 7,500

The buyout carnival arrived at Dave & Buster’s in March 2006, when private equity’s Wellspring Capital bought the Dallas “eatertainment” chain in a deal valued at $375 million. Originally the brainchild of the owners of two neighboring restaurants in Little Rock, Ark., “Buster’s” and “"Slick Willy's World of Entertainment," Dave & Busters reminds adults that “recess is calling,” inviting customers to eat and play skee ball, shuffleboard and assorted other “virtual amusements.” Since last year’s buyout however, Dave & Busters has seen only a virtual profit. Although sales increased by 9% in the last quarter of 2006, the debt that Dave & Buster’s took on during Wellspring’s buyout has kept the company in the red. “’Virtually all’ of the loss for the quarter and the year was attributable to increased debt associated with the company’s purchase by an affiliate of Wellspring,” said D&B CEO Stephen King. While D&B workers in New York making $11 an hour report they can’t afford the company health plan because, in the words of one employee “I heard they take a lot out of your check,” Wellspring took out $2.1 million in transaction fees alone on the deal.