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R.I.P. Toys R Us

Old 03-25-18, 08:23 PM
  #126  
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Re: R.I.P. Toys R Us

Originally Posted by Viper187 View Post
Reduced what? All they need to sell is fucking donuts. The real problem is all this branching out places like that try to do.
And all McDonalds needs to do is sell fucking hamburgers. Taco Bell just needs to sell fucking tacos. It doesn’t work that way.

Particularly with a concept like donuts, you have a storefront that you pay for 24 hours a day to generate revenue for just a few hours in the morning. They were trying to find a way to build traffic all day long. Just like the fast foodies and adding breakfast.

In this manner, Baskin Robbins is an interesting tie because it’s foot traffic is mostly in the evening. However those are still pretty niche concepts that aren’t necessarily going to bring a customer back multiple times a week for a higher-dollar ticket (i.e., a meal).

Their biggest challenge is overcoming generations of marketing as a coffee shop. I still remember going in with my dad (one of the very few fond memories I have with him) and sitting at “the bar” on those round stools The smell of the coffee and donuts was just enchanting. I’d get a donut and juice and read the comics in the paper. He’d read the rest as he drank coffee.

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Old 03-28-18, 10:30 AM
  #127  
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Re: R.I.P. Toys R Us

so any update on the company that was going to put out a bid for Toy's R us?
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Old 03-28-18, 06:47 PM
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Re: R.I.P. Toys R Us

The gofundme one?

They raised $51,000, which is amazing, although their goal is to raise 800 million. So still time to get your 100 million bid in.
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Old 03-28-18, 08:52 PM
  #129  
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Re: R.I.P. Toys R Us

If I contribute to the gofundme, can I get an extended warranty on my investment?
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Old 03-31-18, 12:12 AM
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Re: R.I.P. Toys R Us

Originally Posted by BobO'Link View Post
If I'm reading everything correctly, it was a leveraged buyout by private "investors" who put the borrowed purchase funds (i.e. debt) on the company creating more interest payments than was sustainable. Basically, force a buyout, dump the borrowed purchase cost on the company, write down your investment (which gives you profit and you don't suffer from bankruptcy), which forces the company into bankruptcy as they can't pay the interest and continue to operate. Move on to another company to repeat the process.

It's a process which guts and ruins otherwise profitable businesses. It should never be allowed to happen but it does all the time. The (unethical) rich get richer and everyone else gets the shaft. And they do it with other people's money - never their own.
If this is a common, well-known practice - why do businesses like TRU fall for this?! You would think they would know enough not to get into a situation like this.

That being said, even if this hadn't happened wouldn't TRU have gone out of business at some point soon anyway?! As has been discussed, they've been a shadow of their former self for years. I'm actually surprised they didn't go out of business 10 years ago.
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Old 04-03-18, 02:21 AM
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Re: R.I.P. Toys R Us

I dropped by a Toys R Us today in Culver City, CA

Sign says it's Up to 30% off right now. But, I walked in and mostly stuff is only 10% off. Games, DVDs and BDs were mostly empty shelves and cabinets. Surprised how messy and empty many of the other shelves were too. I mean it's only 10% off.

I have no intention of setting foot in another one again during the close out sale. Just a sad place.
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Old 04-03-18, 08:29 AM
  #132  
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Re: R.I.P. Toys R Us

Originally Posted by DJariya View Post
I have no intention of setting foot in another one again during the close out sale. Just a sad place.
Liquidating stores are sad, depressing places. I wandered into Circuit City, Borders, and CompUSA in their final days just to say goodbye and thanks for all of the good times.

I still miss Borders so much it fucking hurts.
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Old 04-03-18, 02:38 PM
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Re: R.I.P. Toys R Us

Originally Posted by TheDude View Post
If this is a common, well-known practice - why do businesses like TRU fall for this?! You would think they would know enough not to get into a situation like this.
Aren't LBOs basically hostile take overs making it difficult for the targeted company to avoid the same fate of firms like Toys R Us?

I know that companies will try to introduce poison pills to act as a roadblock to a LBO but my understanding is that if a company like Bain has you in their crosshairs you can try and delay all you want but ultimately you are boned.

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Old 04-09-18, 08:51 PM
  #134  
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Re: R.I.P. Toys R Us

Like I suspected, many toy/gaming companies have recalled their products from Toys R' Us. Sony took out all their inventory from the stores, including all the consoles. Hear the same thing is happening at Babies R Us.
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Old 04-10-18, 06:25 PM
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Re: R.I.P. Toys R Us

Originally Posted by Red Hood View Post
Like I suspected, many toy/gaming companies have recalled their products from Toys R' Us. Sony took out all their inventory from the stores, including all the consoles. Hear the same thing is happening at Babies R Us.
Yeah...that was pretty much a given as others have pointed out there is no way in hell that you would walk into a Lego store see a set selling for $100.00 and be able to walk out and head to a Toys R Us to pick it up in a fire sale for $20.00, as that would just wreck Lego's brand.

Sony and all these other companies can easily re-sell all this inventory they are taking back to places like Gamestop or Best Buy that are not going out of business.

As long as the inventory is not damaged or plastered with hard to remove Toys R Us stickers the merchandise sounds like it is crazy easy for Lego, Sony, and other companies to resell to businesses that are on more stable ground.
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Old 04-10-18, 08:09 PM
  #136  
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Re: R.I.P. Toys R Us

Funny thing you mentioned Legos. Of all the things in the store, Legos were the only ones discounted only at 5%. I imagine they have a contract in which they can't go below that.
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Old 04-11-18, 12:46 AM
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Re: R.I.P. Toys R Us

Originally Posted by Red Hood View Post
Funny thing you mentioned Legos. Of all the things in the store, Legos were the only ones discounted only at 5%. I imagine they have a contract in which they can't go below that.
The markup is so high above MSRP, it won't be any kind of savings at all.
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Old 04-11-18, 09:02 AM
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Re: R.I.P. Toys R Us

Originally Posted by Josh-da-man View Post
Liquidating stores are sad, depressing places. I wandered into Circuit City, Borders, and CompUSA in their final days just to say goodbye and thanks for all of the good times.

I still miss Borders so much it fucking hurts.
I miss Borders too. I loved that bookstore.

I stopped into my two local TRU's to say goodbye. Didn't buy anything though. To me that feels like the equivalent of going through the pockets of someone you just saw die.
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Old 04-11-18, 02:13 PM
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Re: R.I.P. Toys R Us

Originally Posted by robin2099 View Post
Basically Toy's R Us used to be on the stock market. A real estate group Vornado and two private equity groups, Bain Capital and KKR. They only did a leveraged buy out though, which means that they put up 20% of the money to buy it back from the stock holders, and the rest has to be paid back. So they only paid the stock holders $1.5 billion(I believe) then they had to pay back the other $5 billion from the stores profits, on top of paying the advisory fees and what not.

I went into my local store recently and I cant lie, I got a little emotional. I have such fond memories of being a TRU kid growing up that no TRU stores is still hard for me to fathom.
Fun fact: KKR owns Internet Brands, which owns DVDTalk.
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Old 04-11-18, 04:33 PM
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Re: R.I.P. Toys R Us

Looks like the go fund me is up to 200 million but that is the Millionaires money too...

https://www.npr.org/2018/04/10/60013...save-toys-r-us

Toys R Us is going out of business, its website is shuttered, its gift cards will expire soon, and some of its store locations are on the auction block.

But one businessman is determined to bring the bankrupt toy store franchise back to life.

"I will make Toys R Us a fun place again," toy mogul Isaac Larian tells NPR's Rachel Martin.

To do that, Larian is raising money through a GoFundMe campaign. Larian is the head of MGA Entertainment, maker of the Bratz line of dolls and Little Tikes, which are sold in Toys R Us stores.


MGA Entertainment CEO Isaac Larian has launched a campaign to try to save Toys R Us through a GoFundMe campaign.
Rachel Murray/Getty Images for MGA Entertainment
The campaign itself relies on nostalgic appeal for a childhood icon — one that spans generations and includes a catchy commercial jingle. "You can be a part of this historic movement to #SaveToysRUs by donating today!" the campaign page says. "Your donation will help to ensure that generations to come can 'always be a Toys R Us kid' and save employee jobs that are at stake should the company cease operation."

So far, the #SaveToysRUs campaign to raise $1 billion has brought in a little over $2oo million — though most of that is a pledge from Larian and other big investors. The rest is from people making smaller donations in return for stickers and toys. (According to the campaign, if the goal is not met by May 28 and the donations are not used to buy Toys R Us, the money will be returned.)

Game Over For Toys R Us: Chain Going Out Of Business
THE TWO-WAY
Game Over For Toys R Us: Chain Going Out Of Business
Toys R Us announced last month that it would go out of business, telling its more than 30,000 employees (including those at Babies R Us) that it would sell or close all of its U.S. stores. The chain's problem, as described by NPR's Alina Selyukh, has been managing its debt:

Toys R Us has struggled with a heavy load of debt inherited from a 2005 buyout, as well as intense competition from Walmart, Amazon and Target — made worse by disappointing holiday sales.

The chain — whose history traces back to a post-World War II baby furniture store — has spent many decades as the country's largest dedicated toy emporium. In 2017, Toys R Us accounted for roughly one-fifth of toy sales in the U.S., according to Jefferies analyst Stephanie Wissink.

But in recent years, Toys R Us has found itself amid a trifecta of demographic and social changes, Wissink says.

Today's parents are the millennial generation who grew up with the Internet and approach purchasing decisions and time they spend with children differently from baby boomers. Generally, foot traffic is falling at brick-and-mortar stores. And children are playing differently than they used to decades ago.

Larian says if he is able to buy it, he plans to reinvest in the company in ways the chain has been unable to because of the debt — though he would likely keep only about 150 to 200 of its 735 U.S. stores.

As for his imagined revamp, he won't give details. "We are still competing to buy Toys R Us, and I don't want other people to know what we plan to do," he says. "It's not going to be a minor thing. It's going to be a major thing."

Other potential buyers, he says, would simply flip the company, and if that happens, "Toys R Us is not going to last. It needs a crazy person who lives, breathes and eats toys like I do."
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Old 04-12-18, 08:50 AM
  #141  
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Re: R.I.P. Toys R Us

i don't think they will make it...
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Old 04-13-18, 12:05 AM
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Re: R.I.P. Toys R Us

Gee... That comment in the quote about the "website is shuttered" is rather off... I visited it a few minutes ago. They've raised the free shipping threshold to $99 (actually did that a few weeks back) but it's still there...
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Old 04-13-18, 12:16 AM
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Re: R.I.P. Toys R Us

Originally Posted by BobO'Link View Post
Gee... That comment in the quote about the "website is shuttered" is rather off... I visited it a few minutes ago. They've raised the free shipping threshold to $99 (actually did that a few weeks back) but it's still there...
You can browse the website, but you canít make a purchase.
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Old 04-13-18, 12:18 AM
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Re: R.I.P. Toys R Us

There is a pop up window if you go to the website saying its been shut down.
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Old 04-13-18, 08:59 AM
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Re: R.I.P. Toys R Us

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Old 04-13-18, 02:46 PM
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Re: R.I.P. Toys R Us

Originally Posted by The Cow View Post
You can browse the website, but you canít make a purchase.
Originally Posted by Bluelitespecial View Post
There is a pop up window if you go to the website saying its been shut down.
I had to visit with IE to see that. It seems to work just fine with Firefox (although I have script blockers running that are likely what's stopping the popups).
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Old 04-13-18, 04:15 PM
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Re: R.I.P. Toys R Us

http://money.cnn.com/2018/04/13/news...bid/index.html

I would say $675 million seems like a decent offer. Also it appears he is not using any go fund me money...

The CEO behind Bratz dolls and Little Tikes toys is officially making his bid for Toys "R" Us.
Isaac Larian said Friday that he's entered a formal offer of $675 million to buy many of the Toys "R" Us stores in the United States, along with an additional $215 million for Toys "R" Us stores in Canada.

Larian is looking to buy more than 200 of the remaining 735 locations in the US, and almost all of more than 80 locations in Canada, a spokesperson said.

Larian, who runs MGA Entertainment, will use his own money for the bid, along with financing from banks and additional investors, according to a press release.

"The liquidation of Toys 'R' Us is going to have a long-term effect on the toy business. The industry will truly suffer," he said in a statement. "The prospect of bringing the Toys 'R' Us experience to a new generation, my new grandson's generation, is enough to motivate me to Save Toys 'R' Us."

Toys "R" Us declined to comment.

Related: Amazon didn't kill Toys "R" Us. Here's what did

The company said in March that it would shut or sell all its US stores after a failed turnaround bid. Toys "R" Us filed for bankruptcy last fall.

Previously, Larian tried to raise $1 billion to save Toys "R" Us through a crowdfunding campaign. But he won't tap any of those pledges for his actual offer, and those who pitched in will get their money back, according to the spokesperson. The crowdfunding effort was designed only to raise awareness, she said.

Larian's vision for Toys "R" Us includes turning its stores into entertainment hotspots.

"We will make Toys 'R' Us an experience in and of itself; a fun and engaging place where families can spend an entire day," he said in his statement on Friday. "Imagine a mini-Disneyland in each neighborhood."

In the past, Larian has blamed the demise of Toys "R" Us on its private equity owners, which saddled the company with debt.

"Every penny it made went to paying the debt service," he said in an interview with CNNMoney
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Old 04-13-18, 04:36 PM
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Re: R.I.P. Toys R Us

I believe a smaller version of the chain probably could eke out a profitable existence.
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Old 04-14-18, 10:07 AM
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Re: R.I.P. Toys R Us

I went by our TRU today. Only 10% off most everything. 5% off Legos. What a joke. The only thing my kid was interested in, it was still 25% more expensive than Amazon.
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Old 04-14-18, 11:17 AM
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Re: R.I.P. Toys R Us

Legos will probably never be significantly marked down. Lego will ask TRU to send them back first,
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