Toys R Us closing

Maestro · 03-15-2018, 04:23 PM

Quote:

Originally Posted by Alfisti

How the fuck do they go broke? They have more selective than anyone and basically a monopoly on toys. Fair effort to to go break with that advantage.

Simple, the private equality who came and thought they would turn it around when they began struggling with managing online sales, strapped the company with $5B in debt without delivering a solution.

Does not mean Kid & Babies R Us are also going under?

Alfisti · 03-15-2018, 04:37 PM

Right but why the $5bn? As in why do that and the stores still look shite?

RickFLM4 · 03-15-2018, 04:54 PM

Quote:

Originally Posted by Alfisti

Right but why the $5bn? As in why do that and the stores still look shite?

It was used to finance buyout price not refurbish stores. They were over-leveraged and had no further borrowing capacity to refurbish stores. Cash flow couldn't service debt so also no cash flow available to refurbish stores. Sales slipped. Death spiral ensured.

Germanauto · 03-15-2018, 04:58 PM

I have a lot of fond memories going there. But with the rise of the internet age, things can be found for cheaper, and I find that children now care more for gadgets than they do for toys and bicycles.

Blockbuster was fun too back in the day.

Such is life...

N0Chill 335i · 03-15-2018, 06:32 PM

I love Toys R Us and visit about once a week at my local store to pick up items for nostalgia sake. In fact I was just there today and picked up a couple items. It's really sad to see them going under but I can understand why. Big retail location that specializes in toys that you can get online at lower rates most times. The overhead for such large locations in flourishing areas of business also has to be costly. Let's also take into account most kids are hard wired to technology these days. Tablets, phones, computers... The average toy is played with for a couple days and then discarded. It's a business with no true consumer anymore.

infinitekidM2C · 03-15-2018, 06:47 PM

that sucks, you won't have anything similar in terms of toy and game selection, the one near me has a damn wall of board games that would impress donald trump. well ill be going in with my kids a lot until they are gone.

MrRoboto · 03-15-2018, 07:01 PM

Quote:

Originally Posted by Ali Shiralian

They'll remain open in Canada, for now....

Walmart is killing them in the US

Thats capitalism...doesn't always work the way we want it to.

Ali Shiralian · 03-15-2018, 08:35 PM

Quote:

Originally Posted by MrRoboto

Thats capitalism...doesn't always work the way we want it to.

Yup, agreed..

TrevorM3 · 03-15-2018, 08:59 PM

crazy, and sad

R3dliner · 03-16-2018, 10:28 AM

Reading more up on it, they were apparently in massive debt and bleeding 400 mil a year on servicing that debt. No wonder everything went to shit. Couldn't reinvest to make it better.

Kolyan2k · 03-17-2018, 03:13 PM

Too bad they couldn't get their shit together. They are loosing sales because they are over priced and carry ton of shitty low quality products.
I wouldn't mind buying form them but other MUCH smaller stores carry better and cheaper products. Last time I spent like 40 minutes in Home Goods kids section

BillD1953 · 03-17-2018, 04:50 PM

The LBO and timing of the buyout is what ultimately killed the chain of Toys R Us stores.

The mountain of debt on the books caused by the LBO did not leave enough working capital to make the changes to the company to compete with Walmart's, Amazon and other online retailers and the bricks and mortars retail places still making a profit.

Excess debt is a "killer" !

Kolyan2k · 03-22-2018, 11:28 PM

Founder passed away

http://money.cnn.com/2018/03/22/news...ary/index.html

TXSTYLE · 03-23-2018, 09:02 AM

I am a parent. So sure, I have a lil sympathy for the nation's kiddos.

BUT... Have you been in a TOYS R US lately???

It looks the same as it did in the 80s!!
Add to that the overpriced toys and poor customer service, they deserve to vanish.

They needed to change their business model over many years ago.

EyeGuy · 03-23-2018, 11:19 AM

I read that today is the start of everything going on sale.

UncleWede · 03-23-2018, 11:45 AM

Isn't there a godundme by the workers to buy? Kinda like Harley-Davidson from AMF

Kolyan2k · 03-23-2018, 12:56 PM

Quote:

Originally Posted by EyeGuy

I read that today is the start of everything going on sale.

It started a month ago, they have almost nothing useful left

I think today they were supposed to launch some massive 70-80% sale for all left overs

Never_Enough · 03-23-2018, 02:50 PM

Quote:

Originally Posted by Germanauto

I have a lot of fond memories going there. But with the rise of the internet age, things can be found for cheaper, and I find that children now care more for gadgets than they do for toys and bicycles.

Blockbuster was fun too back in the day.

Such is life...

Yea, glue the kids to an iPad instead of get them a bicycle. SMH

Never_Enough · 03-23-2018, 02:50 PM

Quote:

Originally Posted by TXSTYLE

I am a parent. So sure, I have a lil sympathy for the nation's kiddos.

BUT... Have you been in a TOYS R US lately???

It looks the same as it did in the 80s!!
Add to that the overpriced toys and poor customer service, they deserve to vanish.

They needed to change their business model over many years ago.

No, it doesn't look the same b/c the selection when I was a kid was awesome. Not so much anymore.

Germanauto · 03-23-2018, 03:18 PM

Quote:

Originally Posted by Never_Enough

Yea, glue the kids to an iPad instead of get them a bicycle. SMH

iPad = babysitter.

PINeely · 03-23-2018, 04:21 PM

Quote:

Originally Posted by TXSTYLE

I am a parent. So sure, I have a lil sympathy for the nation's kiddos.

BUT... Have you been in a TOYS R US lately???

It looks the same as it did in the 80s!!
Add to that the overpriced toys and poor customer service, they deserve to vanish.

They needed to change their business model over many years ago.

Store may look the same but the toys are way better. I heard about them closing and decided to go walk around the other day, I left feeling like I'd been cheated out of the really fun stuff as a kid. Toys are SO MUCH cooler. Look at this ride-on land speeder I took a picture of. I'd have killed for this thing when I was little. Cooler nerf guns, cooler Lego sets, man it was something else. It sort of makes the transition to digital kids' entertainment that much more tragic.

They did fail to keep it fresh. As a kid I saw the inside of that place maybe 4 times but it's the same today as it was then. I used to buy video games there and that's really the only part of the store that was ever updated or rearranged.

SharpAndCunning · 03-23-2018, 04:33 PM

Quote:

Originally Posted by RickFLM4

Sears still has appliances and that’s a good place to get them but they whored out Craftsman tools and who has bought clothes or jewelry at Sears in the last 30 years?

I have bought clothes at sears. One near where the girlfriend works is closing, and they had Lee and Roebuck jeans on closeout for $3.87. I walked out with half a dozen pairs.

It's a shame about Craftsman tools though. How the hell does Snap on make money, and Craftsman can't!? Snap-On are not worth the premium you pay for them.

03-15-2018, 04:37 PM	#46
Alfisti Brigadier General 6909 Rep 3,261 Posts Drives: 2008 Saab 9-3 Combi Join Date: Nov 2014 Location: Toronto, Canada iTrader: (0)	Right but why the $5bn? As in why do that and the stores still look shite?
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03-15-2018, 04:58 PM	#48
Germanauto Major General 9841 Rep 6,142 Posts Drives: Alfa Romeo Giulia, Rosso Join Date: Jul 2016 Location: LA iTrader: (0)	I have a lot of fond memories going there. But with the rise of the internet age, things can be found for cheaper, and I find that children now care more for gadgets than they do for toys and bicycles. Blockbuster was fun too back in the day. Such is life...
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03-15-2018, 06:32 PM	#49
N0Chill 335i Colonel 855 Rep 2,771 Posts Drives: 13' F30 335i M Sport AW Join Date: Nov 2011 Location: MD iTrader: (2)	I love Toys R Us and visit about once a week at my local store to pick up items for nostalgia sake. In fact I was just there today and picked up a couple items. It's really sad to see them going under but I can understand why. Big retail location that specializes in toys that you can get online at lower rates most times. The overhead for such large locations in flourishing areas of business also has to be costly. Let's also take into account most kids are hard wired to technology these days. Tablets, phones, computers... The average toy is played with for a couple days and then discarded. It's a business with no true consumer anymore.
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03-15-2018, 06:47 PM	#50
infinitekidM2C Major General 4298 Rep 5,737 Posts Drives: 2019 M2 Competition Join Date: Nov 2007 Location: Orange County, CA iTrader: (4) Garage List 2019 M2 COMPETITION [9.75] 2008 135i (my old car) [7.56]	that sucks, you won't have anything similar in terms of toy and game selection, the one near me has a damn wall of board games that would impress donald trump. well ill be going in with my kids a lot until they are gone.
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03-15-2018, 08:59 PM	#53
TrevorM3 Banned 3325 Rep 8,083 Posts Drives: 6.3 AMG Join Date: Apr 2013 Location: Florida iTrader: (0)	crazy, and sad
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03-16-2018, 10:28 AM	#54
R3dliner Lieutenant Colonel 939 Rep 1,929 Posts Drives: 18 M3 6MT Join Date: Mar 2016 Location: NYC iTrader: (5)	Reading more up on it, they were apparently in massive debt and bleeding 400 mil a year on servicing that debt. No wonder everything went to shit. Couldn't reinvest to make it better.
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03-17-2018, 03:13 PM	#55
Kolyan2k Major General 968 Rep 5,555 Posts Drives: 2006 S2000 Join Date: Apr 2010 Location: Boston iTrader: (1)	Too bad they couldn't get their shit together. They are loosing sales because they are over priced and carry ton of shitty low quality products. I wouldn't mind buying form them but other MUCH smaller stores carry better and cheaper products. Last time I spent like 40 minutes in Home Goods kids section
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03-17-2018, 04:50 PM	#56
BillD1953 Lieutenant 236 Rep 424 Posts Drives: 2018 X3 M40i Join Date: Dec 2015 Location: Portsmouth NH iTrader: (0)	The LBO and timing of the buyout is what ultimately killed the chain of Toys R Us stores. The mountain of debt on the books caused by the LBO did not leave enough working capital to make the changes to the company to compete with Walmart's, Amazon and other online retailers and the bricks and mortars retail places still making a profit. Excess debt is a "killer" !
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03-22-2018, 11:28 PM	#57
Kolyan2k Major General 968 Rep 5,555 Posts Drives: 2006 S2000 Join Date: Apr 2010 Location: Boston iTrader: (1)	Founder passed away http://money.cnn.com/2018/03/22/news...ary/index.html
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03-23-2018, 09:02 AM	#58
TXSTYLE "Salud" 14912 Rep 4,879 Posts Drives: F01 & F15 / Mineral White Join Date: May 2013 Location: The GYM! (The Burbs - N TX) iTrader: (0)	I am a parent. So sure, I have a lil sympathy for the nation's kiddos. BUT... Have you been in a TOYS R US lately??? It looks the same as it did in the 80s!! Add to that the overpriced toys and poor customer service, they deserve to vanish. They needed to change their business model over many years ago.
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03-23-2018, 11:19 AM	#59
EyeGuy Second Lieutenant 166 Rep 247 Posts Drives: 08 335xi coupe, 17 nx200t, 23 Join Date: Apr 2011 Location: NY -> Fl iTrader: (2)	I read that today is the start of everything going on sale.
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03-23-2018, 11:45 AM	#60
UncleWede Long Time Admirer, First Time Owner 18404 Rep 9,420 Posts Drives: G01 X3 M40i Dark Graphite Join Date: Jun 2005 Location: Oxnard, CA iTrader: (0)	Isn't there a godundme by the workers to buy? Kinda like Harley-Davidson from AMF __________________ I have romped on her and I giggled like a drunk infant the entire time. - Sedan_Clan
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