3 ms·
" It was Toys 'R' Us' own mismanagement that doomed it." It was the private equity investors who loaded it up with debt in order to cash out who doomed it. Yo
by jonhendry18 8y ago
" It was Toys 'R' Us' own mismanagement that doomed it."
It was the private equity investors who loaded it up with debt in order to cash out who doomed it.
You don't have a hope in hell of adjusting to market changes when your funds are tied up paying off the loans your owners made you take on in order to fund their takeover.
- gaius 8y agoIt’s insane that as a PE you can borrow money, buy a company with it, transfer the debt to the company and you magically own the company having paid $0 of your own money for it.