How Private Equity Killed Toys “R” Us
inthesetimes.com
Private equity firms bled the company dry to turn a profit, and now mass layoffs are imminent.

Basically, the company had to pay for its own buyout when private equity firms KKL, Vornado, and Bain bought the company for $6.6 billion, mostly with loans.

Because the company then had to pay off those extreme loans, they were forced to sell off their assets and property, which they leased back from the very private equity firms that now owned them.

The same thing happened more recently with Red Lobster and JoAnn Fabrics.

    • FunctionallyLiterate@lemmy.caEnglish
      16·
      3 days ago

      From the Wikipedia page:

      In September 2017, Toys “R” Us filed for bankruptcy protection in the U.S. and Canada. In June 2018, Toys “R” Us closed its remaining 200 stores after entering bankruptcy, however certain international divisions outside of the United States continued.

      In January 2019, the global (excluding Canada) Toys “R” Us intellectual property was transferred to Tru Kids, Inc. In August 2021, Tru Kids announced that Toys “R” Us would be opening over 400 stores within Macy’s starting in 2022. A few new standalone stores would open, starting late in 2021. The flagship store is located in New Jersey at the American Dream shopping and entertainment complex. A second flagship store was opened inside the Mall of America in Bloomington, Minnesota, in November 2023.

    • primrosepathspeedrun@anarchist.nexusEnglish
      5·
      3 days ago

      Yeah it feels like Japan got the 70s/80s retrofuturism timeline blade runner and cyberpunk2077 are on. It’s not good–it is at least more sensibly evil.