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Asset stripping is the practice of buying a company in order to sell its assets individually at a profit. The term is generally used in a perjorative sense as such activity is not considered productive to the economy. It is probably based on the term strip mining in which a mine operator extracted as much valuable material out of a mine and once it was exhausted, abandoned the mine without mitigating any environmental damage as a result of the operations.
"Asset stripping" is also sometimes used to describe the practice of investors dealing directly with armed militant groups in developing nations to take direct control of assets that legally belong to the state or commons or any group in society that the investor and armed militant can effectively coerce. It has led to deforestation in Africa and Colombia and to other harmful effects. Jim Friedman on a United Nations panel on exploitation of natural resources in the Democratic Republic of Congo, listed this as one of several key concerns in "investment and human rights".
Some Heart of Midlothian FC fans in Scotland may see Vladimir Romanov is "Asset stripping" after his recent comments stating he would sell some players if they did not win against Dunfermline Athletic F.C.. On the day they drew 1-1. It is still to be seen what Vladimir Romanov will do with the players.
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