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"Think of it like The Toys-R-Us of DRAM" I would have loved to be in that board meeting
by ringaroundthetx 9y ago
"Think of it like The Toys-R-Us of DRAM"
I would have loved to be in that board meeting
- ehnto 9y agoConsidering Toys-R-Us has gone bankrupt, perhaps not the most prosperous analogy either!
- eli 9y agoPretty sure Bain Capital owns a controlling stake in Toys-R-Us
- justin66 9y agoLoading down one of their companies with debt and then having it file for bankruptcy is a strategy they've used in the past. I wonder if that's what happened here.
- cratermoon 9y agoThat's pretty much Bain's modus operandi for all their holdings.
- JumpCrisscross 9y ago> Loading down one of their companies with debt and then having it file for bankruptcy is a strategy they've used in the past Bain will lose almost all its money in Toys ‘R’ Us. It has written its equity down to zero, didn’t really take any dividends along the way, and itself holds the most junior tranches of debt.
- remline 9y agoThen other holdings of Bain sold "Toys R Us" goods and services and were perhaps sold after a good quarter?
- zeusk 9y ago> "Think of it like The Toys-R-Us of DRAM" except you're completely wrong. DRAM business is booming and is/was the most profitable BU of Toshiba; Their reason to selling it is because of the debt and losses incurred as a result of their westinghouse acquisition.
- basch 9y agothey also had a huge accounting scandal very recently. westinghouse was icing on the cake. the company has admitted to inflating its net profits by $1.3bn over seven years. then, former top management played a role in the padding of profits by an additional ¥40bn ($339m) over a three-year period.
- devopsproject 9y agoManagement gets huge bonuses when stuff like this happens so im sure the general mood was pretty positive