R.I.P. Toys R Us
03-21-18, 02:33 PM
#101
DVD Talk Legend
Re: R.I.P. Toys R Us
Kinda their own fault since their initial online strategy was to sell through Amazon rather than their own set. Rendered their online shop useless and no one who wanted to buy toys online ever thought to check out their site before going to Amazon.
03-21-18, 02:51 PM
#102
DVD Talk Hero
Re: R.I.P. Toys R Us
The idea in a LBO takeover is that the current management is missing some hidden value in a company. Outsiders come in using leveraged debt to completely buy the business and "unlock" this hidden value. The hope is turning the business around fast enough for a quick sale to another buyer.
It's largely the corporate finance equivalent of individuals specializing as house flippers in real estate.
It's largely the corporate finance equivalent of individuals specializing as house flippers in real estate.
03-21-18, 02:59 PM
#103
DVD Talk Hero
Re: R.I.P. Toys R Us
The idea in a LBO takeover is that the current management is missing some hidden value in a company. Outsiders come in using leveraged debt to completely buy the business and "unlock" this hidden value. The hope is turning the business around fast enough for a quick sale to another buyer.
It's largely the corporate finance equivalent of individuals specializing as house flippers in real estate.
It's largely the corporate finance equivalent of individuals specializing as house flippers in real estate.
03-21-18, 03:43 PM
#105
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Re: R.I.P. Toys R Us
interesting KB Toys is poised to come back with pop up stores for Xmas due to decline of TRU
http://money.cnn.com/2018/03/20/news...-us/index.html
http://money.cnn.com/2018/03/20/news...-us/index.html
From what I have read ... nothing beyond screwing a relatively successful business that had been through some down years.
03-21-18, 04:56 PM
#106
DVD Talk Hero
Re: R.I.P. Toys R Us
Are you sure KB has been coming back for years? TRU bought the name out when they went under, and I think only recently sold it off. Toys R Us did do some seasonal pop up stores that were discount toy stores, but that was under their name. Besides, KB was always a "overprice things then bring the price down with sales" place, almost everything was on "sale."
If all the TRU close down, though, the seasonal pop up store would absolutely have some value, under any name.
If all the TRU close down, though, the seasonal pop up store would absolutely have some value, under any name.
03-21-18, 08:06 PM
#107
DVD Talk Hero
Re: R.I.P. Toys R Us
interesting KB Toys is poised to come back with pop up stores for Xmas due to decline of TRU
http://money.cnn.com/2018/03/20/news...-us/index.html
http://money.cnn.com/2018/03/20/news...-us/index.html
Since toy stores are famously only profitable around Christmas, that could work. But they'll need to have good inventory that they can actually sell.
One of the big problems with the toy industry is that flood the market with unsellable junk, and then short on the stuff people actually want. Try walking into a store and finding a NES Classic, SNES Classic, or a short-packed action figure.
If the pop-up KB stores don't play it right, then their stores will be filled with peg-warming action figures and Air Hogs.
03-22-18, 02:33 PM
#108
Re: R.I.P. Toys R Us
There have been many sad moments for Toys"R"Us in recent weeks, and none more heartbreaking than today's news about the passing of our beloved founder, Charles Lazarus. Our thoughts and prayers are with Charles' family and loved ones.
— ToysRUs (@ToysRUs) March 22, 2018
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
03-22-18, 03:15 PM
#109
DVD Talk Hall of Fame
Re: R.I.P. Toys R Us
there may be a ray of hope... Billionaire CEO on a mission to save Toys 'R' Us
http://money.cnn.com/2018/03/22/news...-us/index.html
http://money.cnn.com/2018/03/22/news...-us/index.html
03-22-18, 03:19 PM
#110
DVD Talk Hero
Re: R.I.P. Toys R Us
there may be a ray of hope... Billionaire CEO on a mission to save Toys 'R' Us
http://money.cnn.com/2018/03/22/news...-us/index.html
http://money.cnn.com/2018/03/22/news...-us/index.html
The CEO of the company who makes Bratz, Nom Noms, etc. formed an investor group and raised 200 million to buy a piece of TRU (maybe some stores, who knows). They want to raise 800 million more through Go Fund Me. Yeah, 800 million. You won't get a part of the company, but you can get some exclusive Nom Noms.
The GoFundMe page does say that if the money doesn't go to purchase a part of TRU, then you get it back, but that wording is fishy to me, it seems like they would go through and purchase something if they could.
It makes sense that a toy manufacturer would have a vested interest in saving the company, and maybe the motives are altruistic, it just seems like you're giving money to a millionaire to purchase assets.
03-23-18, 01:37 PM
#111
DVD Talk Hero
Re: R.I.P. Toys R Us
It makes sense, the news has many toy manufacturers in a real panic. Right now if you are a toy company frozen out of Walmart or Target, losing Toys R Us greatly limits your potential market.
The problem is that toys aren't really anything but loss leaders for Target and Walmart - they profit much more off those children's parents buying non-toy items. And Amazon is getting increasingly difficult to negotiate with as they become the Internet's version of Walmart/Costco.
The problem is that toys aren't really anything but loss leaders for Target and Walmart - they profit much more off those children's parents buying non-toy items. And Amazon is getting increasingly difficult to negotiate with as they become the Internet's version of Walmart/Costco.
03-23-18, 11:35 PM
#112
DVD Talk Hero
Re: R.I.P. Toys R Us
This could really hurt companies like NECA and McFarlane that put out toys for adult collectors based on R-rated and mature properties. They will still have outlets like online retailers and comic book shops, but TRU was probably their only major national b&m presence.
Ditto Lego; TRU had a huge Lego section. Target and Walmart only have a shelf or two.
Ditto Lego; TRU had a huge Lego section. Target and Walmart only have a shelf or two.
03-24-18, 12:13 AM
#113
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Re: R.I.P. Toys R Us
Are you sure KB has been coming back for years? TRU bought the name out when they went under, and I think only recently sold it off. Toys R Us did do some seasonal pop up stores that were discount toy stores, but that was under their name. Besides, KB was always a "overprice things then bring the price down with sales" place, almost everything was on "sale."
If all the TRU close down, though, the seasonal pop up store would absolutely have some value, under any name.
If all the TRU close down, though, the seasonal pop up store would absolutely have some value, under any name.
Holy shit ... does this sound familiar?
03-24-18, 01:37 PM
#114
DVD Talk Legend
Re: R.I.P. Toys R Us
I just got home from walking around the closest Toys R' us, and its no surprise to me they are going out of business. The sales were only 10-30% off the already marked price. I think maybe the baby stuff might have been 20% off, but everything else was 10% off, Lego's were marked down by only 5%. People were thinking they were getting good deals, but not really when you think about high they marked up prices on everything.
Last edited by Bluelitespecial; 03-24-18 at 08:15 PM.
03-24-18, 01:52 PM
#115
Banned
Re: R.I.P. Toys R Us
Sports Authority - closed in 2016
Gymboree - Filed for bankruptcy in 2017
IHeartMedia - Filed for bankruptcy 2018
Staples - struggling to keep stores open
Brookstone - Bankrupt in 2014, then sold to a Chinese company
Weather Channel - Struggling network sold last week to Byron Allen
Dunkin Donuts - Closing stores all around the world
These people wreck all these businesses, leave thousands unemployed but makes tons of profit in the process. Somehow this bullshit is legal.
03-24-18, 03:41 PM
#116
DVD Talk Legend & 2021 TOTY Winner
Re: R.I.P. Toys R Us
I just got home from walking around the closest Toys R' us, and its no surprise to me they are going out of business. The sales where only 10-30% off the already marked price. I think maybe the baby stuff might have been 20% off, but everything else was 10% off, Lego's were marked down by only 5%. People were thinking they were getting good deals, but not really when you think about high they marked up prices on everything.
03-24-18, 08:58 PM
#117
DVD Talk Hero
Re: R.I.P. Toys R Us
This is what happens at every going out of business sale. They mark everything back up to full MSRP and then give you 10-20% off, which often is at or above what it was priced the week prior. And people buy it because they are stupid. By the time the deals actually get good, anything worth buying is gone.
Anyway, I was looking at some boom boxes ('member those?), that were marked at 20% off. The thing was, I have a good memory for numbers, they priced at $89.99, so they would cost $72 with the discount, but I distinctly remembered that they were priced at $59.99 before the liquidation. So they were being liquidated at $12 over the original price. There was even a new price sticker stuck over the old one.
And I watched someone pick one up and put it in their cart.
03-25-18, 09:02 AM
#119
Re: R.I.P. Toys R Us
This is what happens at every going out of business sale. They mark everything back up to full MSRP and then give you 10-20% off, which often is at or above what it was priced the week prior. And people buy it because they are stupid. By the time the deals actually get good, anything worth buying is gone.
03-25-18, 03:29 PM
#122
DVD Talk Limited Edition
Re: R.I.P. Toys R Us
Yeah, I remember a long time ago when a big store, I think it was a Gibson's, closed down and liquidated. I think it was the first liquidation I saw.
Anyway, I was looking at some boom boxes ('member those?), that were marked at 20% off. The thing was, I have a good memory for numbers, they priced at $89.99, so they would cost $72 with the discount, but I distinctly remembered that they were priced at $59.99 before the liquidation. So they were being liquidated at $12 over the original price. There was even a new price sticker stuck over the old one.
And I watched someone pick one up and put it in their cart.
Anyway, I was looking at some boom boxes ('member those?), that were marked at 20% off. The thing was, I have a good memory for numbers, they priced at $89.99, so they would cost $72 with the discount, but I distinctly remembered that they were priced at $59.99 before the liquidation. So they were being liquidated at $12 over the original price. There was even a new price sticker stuck over the old one.
And I watched someone pick one up and put it in their cart.
03-25-18, 03:33 PM
#123
Banned
Re: R.I.P. Toys R Us
http://money.cnn.com/2015/10/01/inve...ngs/index.html
Even worse, Dunkin Donuts has reduced their menu because of this.
03-25-18, 04:13 PM
#124
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Re: R.I.P. Toys R Us
This is from 2015 and they have not recovered
http://money.cnn.com/2015/10/01/inve...ngs/index.html
Even worse, Dunkin Donuts has reduced their menu because of this.
http://money.cnn.com/2015/10/01/inve...ngs/index.html
Even worse, Dunkin Donuts has reduced their menu because of this.
