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Author Topic: Toys 'R' Us to file bankruptcy  (Read 12351 times)

DTComposer

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Re: Toys 'R' Us to file bankruptcy
« Reply #50 on: March 09, 2018, 12:45:29 PM »

The Babies R Us closest to us is closing. Not surprised as I never saw it terribly busy, but we found the staff to be much nicer and more helpful than the Buy Buy Baby a mile away. Our little one has grown out of needing either store, and we now visit our local independent toyseller or shop online.
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kkt

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Re: Toys 'R' Us to file bankruptcy
« Reply #51 on: March 09, 2018, 04:20:13 PM »

"I don't wanna go bust, I'm a Toys-R-Us kid..."
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Re: Toys 'R' Us to file bankruptcy
« Reply #53 on: March 10, 2018, 10:03:19 AM »

My local Toys R Us is advertising "At least 50 percent off "everything, but most items are 20-30 percent off, except Legos which are still full price.
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Re: Toys 'R' Us to file bankruptcy
« Reply #54 on: March 10, 2018, 10:19:24 AM »

This is what happens when a business is bought by an investment firm that sets its sights on "maximizing leverage" and "value-added synergy" but has absolutely no idea how to actually run the business.
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US71

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Re: Toys 'R' Us to file bankruptcy
« Reply #55 on: March 10, 2018, 01:48:11 PM »

This is what happens when a business is bought by an investment firm that sets its sights on "maximizing leverage" and "value-added synergy" but has absolutely no idea how to actually run the business.

Private Equity firms are more about squeezing all the money out a company, then selling the empty husk.
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formulanone

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Re: Toys 'R' Us to file bankruptcy
« Reply #56 on: March 10, 2018, 05:01:09 PM »

My local Toys R Us is advertising "At least 50 percent off "everything, but most items are 20-30 percent off, except Legos which are still full price.

Naturally, the one thing I was was interested in. Oh, and my son.

kkt

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Re: Toys 'R' Us to file bankruptcy
« Reply #57 on: March 10, 2018, 08:47:41 PM »

My local Toys R Us is advertising "At least 50 percent off "everything, but most items are 20-30 percent off, except Legos which are still full price.

Naturally, the one thing I was was interested in. Oh, and my son.

Yes, likewise.  Although I don't know that there's a Toys-R-Us anywhere near me anymore.
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AlexandriaVA

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Re: Toys 'R' Us to file bankruptcy
« Reply #58 on: March 10, 2018, 09:53:53 PM »

This is what happens when a business is bought by an investment firm that sets its sights on "maximizing leverage" and "value-added synergy" but has absolutely no idea how to actually run the business.

Private Equity firms are more about squeezing all the money out a company, then selling the empty husk.

Planned liquidation is a perfectly acceptable strategy to protect shareholder wealth, particularly if the future looks bleak for the company or industry.
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US71

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Re: Toys 'R' Us to file bankruptcy
« Reply #59 on: March 10, 2018, 09:56:48 PM »

This is what happens when a business is bought by an investment firm that sets its sights on "maximizing leverage" and "value-added synergy" but has absolutely no idea how to actually run the business.

Private Equity firms are more about squeezing all the money out a company, then selling the empty husk.

Planned liquidation is a perfectly acceptable strategy to protect shareholder wealth, particularly if the future looks bleak for the company or industry.

I didn't know private equity firms had shareholders.?
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AlexandriaVA

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Re: Toys 'R' Us to file bankruptcy
« Reply #60 on: March 10, 2018, 09:59:00 PM »

Good catch, didn't see that, but same principle. Liquidate, get out of the market, let someone else bear the loss.

This is what happens when a business is bought by an investment firm that sets its sights on "maximizing leverage" and "value-added synergy" but has absolutely no idea how to actually run the business.

Private Equity firms are more about squeezing all the money out a company, then selling the empty husk.

Planned liquidation is a perfectly acceptable strategy to protect shareholder wealth, particularly if the future looks bleak for the company or industry.

I didn't know private equity firms had shareholders.?
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Re: Toys 'R' Us to file bankruptcy
« Reply #61 on: March 11, 2018, 02:44:08 PM »

The thing they have in common is the pathological focus on quarterly profits rather than long-term growth.
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Brandon

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Re: Toys 'R' Us to file bankruptcy
« Reply #62 on: March 11, 2018, 05:09:08 PM »

The thing they have in common is the pathological focus on quarterly profits rather than long-term growth.

That sums up Wall Street in general.
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AlexandriaVA

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Re: Toys 'R' Us to file bankruptcy
« Reply #63 on: March 11, 2018, 06:45:09 PM »

Too much emphasis on long-term growth can lead to forgone opportunities or allow competitors to cut into the market. There's simply no perfect solution...some firms get it right, others don't. In retail, like with Toys-R-Us, the long-term strategy is probably getting out of the market unless you are Amazon, Target, or Wal-Mart. The point is that liquidations, even self-imposed, are a natural part of the business cycle. Preservation for preservation's sake can be a very misguided philosophy.
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kkt

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Re: Toys 'R' Us to file bankruptcy
« Reply #64 on: March 11, 2018, 08:31:20 PM »

The thing they have in common is the pathological focus on quarterly profits rather than long-term growth.

"The speed of technological advancement isn't nearly as important as short term quarterly gains." - Quark, Deep Space 9 'Little Green Men'
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GCrites80s

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Re: Toys 'R' Us to file bankruptcy
« Reply #65 on: March 11, 2018, 09:03:52 PM »

In my area, most TRUs that are left are in buildings that are at least 25 years old if not 35. Standalones that old around here tend to be in areas that have been supplanted by newer developments further from the core. Had they moved at the same time as other retailers they would have had a better chance of making it I feel.
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Re: Toys 'R' Us to file bankruptcy
« Reply #66 on: March 11, 2018, 09:10:59 PM »

Looks like Stein Marts may be next.
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GCrites80s

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Re: Toys 'R' Us to file bankruptcy
« Reply #67 on: March 11, 2018, 09:44:51 PM »

I think we had plenty of warning with Stein Mart. Three of the showcase fixtures in one of my stores are from a Stein Mart in Cincinnati that closed over 10 years ago. So I have store fixtures from Blockbuster and Stein Mart there and the space itself is an old Kay-Bee. The other showcases in it look Suncoast-y but I can't verify that.
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US71

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Re: Toys 'R' Us to file bankruptcy
« Reply #68 on: March 11, 2018, 09:50:13 PM »

I think we had plenty of warning with Stein Mart. Three of the showcase fixtures in one of my stores are from a Stein Mart in Cincinnati that closed over 10 years ago. So I have store fixtures from Blockbuster and Stein Mart there and the space itself is an old Kay-Bee. The other showcases in it look Suncoast-y but I can't verify that.

Do you sell old store fixtures?
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cl94

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Re: Toys 'R' Us to file bankruptcy
« Reply #69 on: March 11, 2018, 09:57:22 PM »

In my area, most TRUs that are left are in buildings that are at least 25 years old if not 35. Standalones that old around here tend to be in areas that have been supplanted by newer developments further from the core. Had they moved at the same time as other retailers they would have had a better chance of making it I feel.
That's generally the case in the northeast, too. With a few exceptions, most of them are OLD and in bad locations (either far from other major shopping or hard to access).

Looks like Stein Marts may be next.
I think we had plenty of warning with Stein Mart. Three of the showcase fixtures in one of my stores are from a Stein Mart in Cincinnati that closed over 10 years ago. So I have store fixtures from Blockbuster and Stein Mart there and the space itself is an old Kay-Bee. The other showcases in it look Suncoast-y but I can't verify that.
Agree that we had quite a bit of warning. They've been slowly closing for a while.
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Re: Toys 'R' Us to file bankruptcy
« Reply #70 on: March 12, 2018, 02:32:08 AM »

Brick-and-mortar retail is a complete bear trap right now. Very few companies thriving out there right now, and most of those are working on inertia like Walmart. (Kinda sounds like newspapers when you think of it.)
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Re: Toys 'R' Us to file bankruptcy
« Reply #71 on: March 12, 2018, 06:01:00 AM »

In my area, most TRUs that are left are in buildings that are at least 25 years old if not 35. Standalones that old around here tend to be in areas that have been supplanted by newer developments further from the core. Had they moved at the same time as other retailers they would have had a better chance of making it I feel.

I've also noticed that a bunch of Toys R Us stores are located near shopping malls. So when the malls went bust...

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Re: Toys 'R' Us to file bankruptcy
« Reply #72 on: March 12, 2018, 07:35:46 AM »

Brick-and-mortar retail is a complete bear trap right now. Very few companies thriving out there right now, and most of those are working on inertia like Walmart. (Kinda sounds like newspapers when you think of it.)

It's not like Amazon makes money from its retail operations.
https://www.forbes.com/sites/jonmarkman/2017/05/23/the-amazon-era-no-profits-no-problem/#138e9468437a
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Re: Toys 'R' Us to file bankruptcy
« Reply #73 on: March 12, 2018, 10:46:26 AM »

I think we had plenty of warning with Stein Mart. Three of the showcase fixtures in one of my stores are from a Stein Mart in Cincinnati that closed over 10 years ago. So I have store fixtures from Blockbuster and Stein Mart there and the space itself is an old Kay-Bee. The other showcases in it look Suncoast-y but I can't verify that.

Do you sell old store fixtures?


No, I have game stores. I don't have any unneeded fixtures right now. Columbus is definitely the hub of store fixtures stores/warehouses in Ohio though.
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US71

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Re: Toys 'R' Us to file bankruptcy
« Reply #74 on: March 12, 2018, 11:10:05 AM »

I think we had plenty of warning with Stein Mart. Three of the showcase fixtures in one of my stores are from a Stein Mart in Cincinnati that closed over 10 years ago. So I have store fixtures from Blockbuster and Stein Mart there and the space itself is an old Kay-Bee. The other showcases in it look Suncoast-y but I can't verify that.

Do you sell old store fixtures?


No, I have game stores. I don't have any unneeded fixtures right now. Columbus is definitely the hub of store fixtures stores/warehouses in Ohio though.

Just curious since you mentioned old store fixtures.  :)
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