Responses: 3
I am not even going to read it because I do not like Dan Blather. However Toys R Us went out of business because they charged too much for a kids toy. Also, they were top heavy with sales clerks that really didn't do much when you were in the store. Amazon and other internet firms ran Toys R Us out of business.
They were a dying company before KKR did their leveraged buyout in 2005. Further the board of Toys R Us agreed to the buyout. The buyout was for 6.5 Billion and Gross Sales at the time were 11.5 Billion, that was a challenging but still easy to carry debt load at the time. Sales declined at Toys R Us and the management of Toys R Us was looking to dump the chain in 2005 in favor of keeping the more profitable Babies R Us. It was a slow death but Toys R Us was in decline in 2005 when the leveraged buyout took place. So Dan Blather should probably stay out of Financial Analysis........not his lane.
They were a dying company before KKR did their leveraged buyout in 2005. Further the board of Toys R Us agreed to the buyout. The buyout was for 6.5 Billion and Gross Sales at the time were 11.5 Billion, that was a challenging but still easy to carry debt load at the time. Sales declined at Toys R Us and the management of Toys R Us was looking to dump the chain in 2005 in favor of keeping the more profitable Babies R Us. It was a slow death but Toys R Us was in decline in 2005 when the leveraged buyout took place. So Dan Blather should probably stay out of Financial Analysis........not his lane.
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Out of business because they ceased to be relevant. Their online presence was abysmal and they didn’t learn to effectively compete with online retailers #anotheronebitesthedust
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Toys R Us are on the way out, but K B Toys will be making a come back.
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