pull down to refresh
107 sats \ 5 replies \ @Undisciplined 14 May \ on: How Private Equity Killed Toys R us econ
I'm curious, though, if this wasn't still caused by Amazon and changing shopping habits, albeit less directly than might have been expected.
If Toys "R" Us had long-term profitability, then selling it for parts shouldn't have even been in the rational self-interest of the new owners.
Something about it's finances and situation made it a target for this sort of thing.
i would imagine amazon would have had some effect for sure, although i don't think it even comes close to the magic of actually going to a toy shop as a kid.
maybe there were some financial skeletons in the closet we didn't hear about
reply
Something about it's finances and situation made it a target for this sort of thing.
I agree. Also, doesn't Toys R Us bear some responsibility for this outcome? You don't have to take a PE firm's offer.
reply
This.
I loved Toys R Us as a kid, I'm sad I won't be able to share the same experiences I had with my kids.
But it seems to me that while everything here is true, there was clearly a change in behavior in consumer shopping habits, and Toys R Us recognized this and took the private equity offer hoping it would be their best chance of long-term survival.
reply
Good point. Perhaps they some the writing on the wall and chose this deal for that reason.
reply
if I was in charge of Toys R Us and thought the wind of change was blowing, I don't know if I would want to sell to private equity because it seems private equity always operates in mercenary, cancer-like fashion.
Private equity destroyed Thames Water too (the UK’s largest water utility)
just seems a bad thing to sell to, and makes the people who took the deal look bad IMO. fuck you, I'm getting my payout and getting mine etc
reply