metabagel

96 ms·

1411.
by metabagel 9y ago
Thanks for that. OK, so Bain and KKR made back $470 million in fees. Marketplace says that Bain and KKR made money off of the deal. https://www.marketplace.org/2018/03/06/business/toys-r-us-an... "T
1412.
by metabagel 9y ago
The bulk of that was not KKR or Bain's money. They were loans that Toys 'R' Us took on as part of the LBO.
1413.
by metabagel 9y ago
Sorry, advisory fees. We don't know how much they siphoned out of Toys 'R' Us over the last twelve years, and without that information it's premature to say that they lost money on the deal.
1414.
by metabagel 9y ago
We don't really know that they lost the bet. In fact, it seems equally, if not more likely that they profited on the deal, by siphoning money out of the company over the last 12 years. This is a good primer on how these firms operate:
1415.
by metabagel 9y ago
We don't actually know how it worked out for them, because reportedly they spent twelve years siphoning off cash from Toys 'R' Us.
1416.
by metabagel 9y ago
They also charged exorbitant management fees. It seems at least possible that they didn't actually lose money on the deal. Being a private company, it might be hard to find out how much cash they extracted from Toys 'R' Us.
1417.
by metabagel 9y ago
I think you may have missed the part where Toys 'R' Us' debt skyrocketed from $109M to $5B due to the leveraged buyout. The interest on that debt as well as the exorbitant management fees did Toys 'R' Us in. https:
1418.
by metabagel 9y ago
There is an obvious way out - produce a lot of Model 3's in 2018.
1419.
by metabagel 9y ago
Vehicle defects are not uncommon, particularly for a new model, even for high end vehicles. A friend purchased a Porsche Panamera, which had a scratch on the rear passenger console.
1420.
by metabagel 9y ago
Perhaps she didn't have the budget to pursue her questions further. Journalists don't have a blanket obligation to chase every story. They work for a living, just like the rest of us.