Toys R Us selling or closing all stores - Page 2

**nbr3bagshotrow** · 03-15-2018, 05:27 PM

There is no blame here. Toys r us was taken private way before the internet was in play. Toys r us stock prior to the buyout was not performing well so it was bought out. Investors, mutual funds, and pension funds that had had toys r us stock did well. The private equity firm which bought toys r us did well for years. Expanded even internationally. Then the internet started getting big and the likes of amazon came to be. Just an economic change. There are other big changes that have happened over the past 10 years or so. Ebay, PayPal, mobile phones. No blame, just a change.

Gothamite · 03-15-2018, 06:22 PM

Quote:

Originally Posted by nbr3bagshotrow

There is no blame here. Toys r us was taken private way before the internet was in play. Toys r us stock prior to the buyout was not performing well so it was bought out. Investors, mutual funds, and pension funds that had had toys r us stock did well. The private equity firm which bought toys r us did well for years. Expanded even internationally. Then the internet started getting big and the likes of amazon came to be. Just an economic change. There are other big changes that have happened over the past 10 years or so. Ebay, PayPal, mobile phones. No blame, just a change.

https://www.marketplace.org/2018/03/...ory-about-debt

Quote:

And to really get what happened with Toys R Us, you need to understand how these private equity purchases work. They rely on something called a leveraged buyout.

“Leverage just means you're using lots of debt,” said Eileen Appelbaum, co-director of the Center for Economic and Policy Research.

If a private equity firm wants to buy a company, it’ll put up a small portion of the money. Then it’ll go to the bank and borrow the rest.

The key? “They put the debt on the company they buy,” Appelbaum said.

In other words, the firms take out these loans, buy a company and then make that company pay the loans back.

In 2005, the Toys R Us board of directors sold the company for $6.6 billion to the private equity firms Bain Capital and KKR and the real estate investment firm Vornado. The firms put up about 20 percent of the total and borrowed the rest.

Toys R Us became a private company with more than $5 billion in debt.

https://www.bloomberg.com/news/artic...bt-laden-deals

Toys R Us was operating with a normal debt load before its new buyers trashed it.

johnclone · 03-15-2018, 06:32 PM

YOU MANIACS! YOU BLEW IT UP!!!

**nbr3bagshotrow** · 03-15-2018, 06:44 PM

https://www.marke----ch.com/story/pr...tcy-2017-09-19

**nbr3bagshotrow** · 03-15-2018, 06:49 PM

https://www.cnbc.com/2018/03/15/cram...hoo&yptr=yahoo

**wktf** · 03-18-2018, 01:23 AM

My wife and I had our first hug in the Toys R Us store that was at the base of the GM building in NYC, 5th & 59th, same store where they shot the memorable scene from the movie Big. Whenever I hug her from behind, she refers to it as our Toys R Us hug.

Understand how this happened in this world where Amazon rules the retail universe, but this still is very sad to me.

**wktf** · 03-18-2018, 01:27 AM

Quote:

Originally Posted by nbr3bagshotrow

There is no blame here. Toys r us was taken private way before the internet was in play. Toys r us stock prior to the buyout was not performing well so it was bought out. Investors, mutual funds, and pension funds that had had toys r us stock did well. The private equity firm which bought toys r us did well for years. Expanded even internationally. Then the internet started getting big and the likes of amazon came to be. Just an economic change. There are other big changes that have happened over the past 10 years or so. Ebay, PayPal, mobile phones. No blame, just a change.

Yup, just a better mouse trap, as the expression goes. Amazon did to big box stores what Netflix did to Blockbuster.