3 ms·
I'm not sure about the others but I'm pretty positive that Toys R Us was killed by a standard vulture capitalist business model. Arrange a bunch of financing,
by fencepost 8y ago
I'm not sure about the others but I'm pretty positive that Toys R Us was killed by a standard vulture capitalist business model.
Arrange a bunch of financing, purchase a company, saddle that company with the payments for the debt that you used to acquire it, charge that company large management fees and take out any profits that you can. Eventually when the massive debt load and payments are too much for the now under capitalized business see if you can sell the remains to someone else who thinks they might be able to get a little more meat off those bones.
- dajohnson89 8y agobut weren't the unfavorable terms of the purchase a result of poor sales?