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Amazon, Walmart and Target were the ones most responsible for Toys R Us going out of business. They actively ran ads to attract customers away from Toys R Us.
by mobjack 6y ago
Amazon, Walmart and Target were the ones most responsible for Toys R Us going out of business.
They actively ran ads to attract customers away from Toys R Us.
- forkLding 6y agoIt depends, the PE firms that bought Toys R Us did what is considered a hostile move in an leveraged buyout (LBO) which is to saddle Toys R Us with lots of debt (aka they raised debt financing to buy the company) so it had to do everything it could to pay the debt and also generate profits for the PE firms and probably not enough to focus on anything else innovation or operation-wise. Its been noted that LBOs have lead to the demise of several famous companies as noted by Investopedia and LBOs has since gained notoriety. See: https://www.barrons.com/articles/private-equity-firms-provide-20-million-in-assistance-for-former-toys-r-us-employees-1542737621 https://www.barrons.com/articles/private-equity-firms-provid... https://www.latimes.com/business/la-fi-toys-r-us-leveraged-buyout-20180316-story.html https://www.latimes.com/business/la-fi-toys-r-us-leveraged-b... https://www.theatlantic.com/magazine/archive/2018/07/toys-r-us-bankruptcy-private-equity/561758/ https://www.theatlantic.com/magazine/archive/2018/07/toys-r-... https://www.investopedia.com/terms/l/leveragedbuyout.asp#:~:text=A%20leveraged%20buyout%20(LBO)%20is,assets%20of%20the%20acquiring%20company https://www.investopedia.com/terms/l/leveragedbuyout.asp#:~:....
- Anon1096 6y agoWhile true that has nothing to do with shorts.
- danparsonson 6y agoIt wasn't intended as an example of short selling because my point was that the GME saga isn't about short selling per se, but about sticking one in the eye of organisations that tank businesses just to make a profit.