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10-11-2018, 04:24 PM | #51 |
Hisstank.Com General
Join Date: Jun 2008
Location: PA
Posts: 10,816
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No one else but him is saying that. Obviously he has sour grapes because they chose to keep the brand instead of selling it to him.
The idea that private equity firms "destroy" companies is laughable. They buy companies that are already in trouble, so of course many of them will not survive. This assertion also conveniently ignores all the companies they buy that do survive. Of course they don't put up money out of their own pocket and take risks on these deals. Nobody would be willing to try to save these struggling companies if there was that much risk in it. They give the business another chance to save itself and pay off its own debt by becoming successful and profitable again. Capitalism works precisely because corporations can start companies and borrow money without taking on personal risk. It doesn't matter how fake or real the money is behind it, just that the system gives businesses an opportunity to succeed. But no matter what, it's always real money when the bill comes due, as it should be. TRU was already suffering on the stock market when these firms bought out the shareholders and took it private. Obviously they borrowed too much money and paid too much for it, which led to the bankruptcy. The business didn't bring in as much money as they anticipated. This is due to the retail landscape changing dramatically as well as the economic crash in 2009. Last edited by JediJones; 10-11-2018 at 04:27 PM.. |
10-11-2018, 04:32 PM | #52 |
I just want foam gliders.
Join Date: Sep 2007
Location: Tooele (two-willa), Utah
Posts: 18,727
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Bring on Kay Bee Toys...
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10-11-2018, 04:57 PM | #53 |
Hisstank.Com General
Join Date: Jun 2008
Location: PA
Posts: 10,816
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Also, restructuring the debt at the point they were at would have just been ludicrous. The business could already not operate at a level where they could service the debt. Their only chance for survival was to do whatever it took to wipe out the debt and then restart the business with a clean sheet.
Bankruptcy is part of our laws. Yes, of course the people you owe money to get screwed if you go bankrupt. That's the definition of going bankrupt. But you are allowed to emerge from bankruptcy and reopen your doors. The law errs on the side of supporting the consumer, making it easier for a business to stay in business or reopen, because businesses are a service to the citizenry. So the new owners are trying to make as much money as possible on the brand? Last I checked that's the whole point of running a business. What law says they had to sell to Larian if they could make more money long-term by hanging onto the brand? Last edited by JediJones; 10-11-2018 at 05:00 PM.. |
10-11-2018, 10:06 PM | #54 |
Hisstank.Com General
Join Date: Jun 2013
Location: Brooklyn NY!
Posts: 5,239
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Quote:
No one else but him is saying that. Obviously he has sour grapes because they chose to keep the brand instead of selling it to him.
The idea that private equity firms "destroy" companies is laughable. They buy companies that are already in trouble, so of course many of them will not survive. This assertion also conveniently ignores all the companies they buy that do survive. Of course they don't put up money out of their own pocket and take risks on these deals. Nobody would be willing to try to save these struggling companies if there was that much risk in it. They give the business another chance to save itself and pay off its own debt by becoming successful and profitable again. Capitalism works precisely because corporations can start companies and borrow money without taking on personal risk. It doesn't matter how fake or real the money is behind it, just that the system gives businesses an opportunity to succeed. But no matter what, it's always real money when the bill comes due, as it should be. TRU was already suffering on the stock market when these firms bought out the shareholders and took it private. Obviously they borrowed too much money and paid too much for it, which led to the bankruptcy. The business didn't bring in as much money as they anticipated. This is due to the retail landscape changing dramatically as well as the economic crash in 2009. The problem with venture capitalism is that these companies, like Bain, are not buying the struggling companies to give it an earnest try at revitalizing them, they buy them to run up debt in the struggling companies names and have no intention to trying to turn them around. They use that loan to buy the next victim and leave the host to die when there may have been ways to improve or save the company. It wasn’t the lack of toy sales that drove the nail in the coffin for TRU it was the interest payments. No one said anything about investors using their own money. I’m not sure where you are pulling that from. The problem with this application of VC is bowing money against one company to use elsewhere instead of using that borrowed money to make improvements on the company who’s name you borrowed against. That’s the problem. Saddeling a struggling company with additional debt and leaving it to rot. That’s how companies like Bain operate. It’s not the text book definition of VC but it’s a disgusting method of using the rules of the game for the most disgusting of objectives. Bankruptcy is a legal option and people who are in over their heads should have a way out but there are considerable consequences and just because it’s legal isn’t vindication. I’m sure many toy companies are out large amounts of money owed to them from this train wreck. I recall reading an article not too long ago about Mattel laying off many of their own employees. While I’m sure this is due to many complex factors, not getting paid for merchandise rendered to one of your biggest customers has got to add to the troubles. It’s a trickle down effect, sadly it’s the only time trickle down actually works. Pun intended Amen. Last time I was out with my nephews I just assumed we’d hit TRU on our way home. Then it hit me. TRU isn’t there any more. It would be nice to have a chain of stores that cater to toys again just to pop in with the kids. Kay Bee wasn’t great and I was often let down when I went in there years ago but I’ll take it.
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10-12-2018, 07:13 PM | #55 |
Crimson Guard
Join Date: Nov 2007
Location: Kansas City
Posts: 1,471
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I hear that, I miss my TRU that was on my way home. Whenever I had a bad day at work I just stopped in, didn't always find anything, but it was satisfying just to poke around in the Marvel, and Star Wars, and True Heroes stuff once Joe wasn't being stocked. I have a retail jones for not having a toy store now. I hit Target and Walmart once in a great while, but it's just not the same.
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10-12-2018, 08:46 PM | #56 |
Hisstank.Com General
Join Date: Jun 2013
Location: Brooklyn NY!
Posts: 5,239
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Quote:
I hear that, I miss my TRU that was on my way home. Whenever I had a bad day at work I just stopped in, didn't always find anything, but it was satisfying just to poke around in the Marvel, and Star Wars, and True Heroes stuff once Joe wasn't being stocked. I have a retail jones for not having a toy store now. I hit Target and Walmart once in a great while, but it's just not the same.
I'd often go for Toy Therapy during work hours (suck it boss) to the flagship TRU at Time's Sqr though I'm old enough to remember the original mid town TRU by Macys. FAO was also in my district and both afforded me some nice down time away from the stress of life. Booth stores were well stocked with hard to find items and was I fortunate to be able to build a nice collection and grab many difficult to find items there. I really miss them both.
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Visit my vintage Joe restoration page! https://www.flickr.com/photos/131988164@N07/albums Cross Country's super smooth feedback thread. http://www.hisstank.com/forum/buy-se...ml#post4456308 Currently available Hasbro items. PM me for your prices (DO NOT be discouraged by the listing prices) https://www.ebay.com/sch/i.html?_dkr...nirtoys&_oac=1 |
10-13-2018, 12:56 AM | #57 |
Hisstank.Com General
Join Date: Jun 2009
Location: Secret underground complex
Posts: 7,025
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Quote:
I hear that, I miss my TRU that was on my way home. Whenever I had a bad day at work I just stopped in, didn't always find anything, but it was satisfying just to poke around in the Marvel, and Star Wars, and True Heroes stuff once Joe wasn't being stocked. I have a retail jones for not having a toy store now. I hit Target and Walmart once in a great while, but it's just not the same.
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10-13-2018, 11:25 AM | #58 |
$25 Cool
Join Date: Apr 2009
Location: Virginia
Posts: 1,403
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Color me skeptical of the MGA guy too... let's be honest, his bid to "save" TRU was really just a way to buy it cheap. And if he was really concerned with the plight of TRU's workforce, he could've taken the capital he raised for the buyout and started a new chain of toy stores in the markets where he wanted to keep TRUs and hire their old staff.
I think the owners of TRU are awful people for how they went about running TRU, but I'll give their stores a chance. If you only shop from good people, enjoy your Amish quilts and furniture. |
10-13-2018, 10:50 PM | #59 |
Hisstank.Com General
Join Date: Jun 2012
Location: Cobra Island & Massachusetts
Posts: 6,378
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Quote:
Color me skeptical of the MGA guy too... let's be honest, his bid to "save" TRU was really just a way to buy it cheap. And if he was really concerned with the plight of TRU's workforce, he could've taken the capital he raised for the buyout and started a new chain of toy stores in the markets where he wanted to keep TRUs and hire their old staff.
I think the owners of TRU are awful people for how they went about running TRU, but I'll give their stores a chance. If you only shop from good people, enjoy your Amish quilts and furniture. Not sure how I feel about the resurrection just yet. The more I read up on it the more shady the puppet masters behind the scenes seem to be. As far as MGA goes I am sure alot of the intent to buy TRU was more about them recognizing the potential for the TRU brand to be a long term profitable entity than it was about saving jobs but that doesn't mean there was any ill intent. I think under thier direction TRU would have been a lot better off than they are with the current owners, who obviously don't give a shit about anything other than a quick cash grab and I am sure that at the 1st sign of trouble they will be more than ready to dump the company.
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10-16-2018, 01:08 PM | #60 |
He Who Remains
Join Date: Jun 2016
Location: Florida
Posts: 9,377
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I'm curious how ToysRus Canada plays into all this. Their website is still up and going, and I think they still have some stores open up there?
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