Toys R US going bankrupt is a direct result of our overly financialized economy. Had it not been for Bain Capital(That name sound familiar?) & Co swooping in like vultures and saddling the company with debt as a result of a leveraged buyout, Toys R US would still be around. As of last year they still accounted for 20% of all toy sales. I'm not saying they would've been doing better than Amazon but they would've found a way to muddle through just like every other company that competes with Amazon. I hate these private equity guys with a passion. Sucks that Toys R Us is going out of business and jobs will be lost but at least Bain Capital, KKR and Vornado got a cool $200 million out of them...
Goodbye Toys 'R' Us
- Thread starter sean miguel
- Start date
Rey C.
Racing is life... anything else is just waiting.
Generally speaking, I'm not a fan of private equity operators either. There are times when they take a struggling, poorly managed business and turn it around - and that benefits all involved. But there are other times when they simply swoop in and load a business up with debt, deplete any pension assets (leaving the govt./taxpayers to pick up the obligations) and recover their initial investments quickly through fees. After that, any icing on the top goes to them first. Sometimes it works (look at what Michael Dell is doing with his former computer company). And sometimes it doesn't (Toys 'R' Us and iHeart Radio this week). And while it's not quite a typical PE situation, expect Sears Holdings to bite the dust sooner than later. But Eddie Lampert (the major shareholder) is going to make out like a bandit. How? Have a quick read. It's quite interesting, and it represents some of the issues with our financial and legal system.
Heads I win and tails you lose is a pretty sweet game... as long as you're the one calling the coin.
Toys R Us going out, KB Toys owner plotting return.
https://amp.businessinsider.com/kb-toys-plotting-comeback-after-toys-r-us-bankruptcy-2018-3
https://amp.businessinsider.com/kb-toys-plotting-comeback-after-toys-r-us-bankruptcy-2018-3
Will E Worm
Conspiracy...
Good to hear.
They should buy some of the Toys R Us buildings and come back to malls as an anchor store.
Malls can be risky investments nowadays.
Save Toys"R"Us
https://www.gofundme.com/helpsavetoysrus
https://www.gofundme.com/helpsavetoysrus
220+ million dollars already raised...
At least the higher ups are getting close out bonuses on top of all the going out of business discount sales that started today.
At least the higher ups are getting close out bonuses on top of all the going out of business discount sales that started today.
Similar threads
