[blayze5150]

My TRU is still restocking and looks like nothing has changed. Prices on action figures are only 10% off, which makes them almost as cheap as maybe Target. If they had that much merchandise just sitting in warehouses and not moving, no wonder they’re going out of business! Feel bad for the poor employees, though. I’m sure it was a labor of love for many. All this warehouse merchandise makes me wonder, though.... What if there’s a stockpile of 50th Anniversary GI Joe product tucked away in a corner of a warehouse in Nebraska somewhere? If a tanker can find a 25th Eel at Big Lots....
Just sayin’.... anything’s possible.

[Acathla]

Quote:

Originally Posted by blayze5150

If they had that much merchandise just sitting in warehouses and not moving, no wonder they’re going out of business!

TRU isn't going out of business because it kept too much stock on hand. It's going out of business because the company doesn't make enough money to service the massive debt that Bain Capital, KKR, and Vornado took on in order to buy TRU in 2005.

Bloomberg: Toys R Us Downfall Is Ominous Reminder About Debt Laden Deals

Figure 1 shows the massive debt spike in 2005 - note that the amount of debt hasn't decreased significantly in the last 12+ years. Figure 3 shows how the cost of just the interest on the debt was almost as much as TRU's operating income. With most of their money committed to paying interest on debt, it couldn't be invested in building a competitive online infrastructure.

[Laser Viper]

Quote:

Originally Posted by blayze5150

My TRU is still restocking and looks like nothing has changed. Prices on action figures are only 10% off, which makes them almost as cheap as maybe Target. If they had that much merchandise just sitting in warehouses and not moving, no wonder they’re going out of business! Feel bad for the poor employees, though. I’m sure it was a labor of love for many. All this warehouse merchandise makes me wonder, though.... What if there’s a stockpile of 50th Anniversary GI Joe product tucked away in a corner of a warehouse in Nebraska somewhere? If a tanker can find a 25th Eel at Big Lots....
Just sayin’.... anything’s possible.

I agree! I know I came across 2 50th packs at TRU mid September of last year right when TRU announced this.

[blayze5150]

Quote:

Originally Posted by Acathla

TRU isn't going out of business because it kept too much stock on hand. It's going out of business because the company doesn't make enough money to service the massive debt that Bain Capital, KKR, and Vornado took on in order to buy TRU in 2005.

Bloomberg: Toys R Us Downfall Is Ominous Reminder About Debt Laden Deals

Figure 1 shows the massive debt spike in 2005 - note that the amount of debt hasn't decreased significantly in the last 12+ years. Figure 3 shows how the cost of just the interest on the debt was almost as much as TRU's operating income. With most of their money committed to paying interest on debt, it couldn't be invested in building a competitive online infrastructure.

I know, but keeping all that stock does not help. That's money that could go toward that debt. I'm sure it wouldn't cure it, but selling it instead of stockpiling it might have helped things out.

[blackman2005]

ToysRUs was always popular in my area due to the Babies R Us section. I gave up going there looking for action figures long ago after I found out that the people that worked there were collectors as well; making it a pain to actually find what I wanted.

[peter]

Yeh that's a pain when employees that buy are working there...The unfortunate truth is that it's been a crapy store for its customers since the 2005 takeover. One item which has been "in-stock" for three years has not gone on sale. Now it's 10% off, what a bunch of crap. Everything will be shipped out and sold to third parties before anyone can get a deal on anything. There doing the same thing to our Carson's/Bon-Bon stores, keep in mind they were all bought out several years ago as well...Online has had the market for some time now. Our mall turns into a mini Beirut during the Christmas Holidays, I mean who wants a bowel of Baba ghannouj with zaatar, instead of Frosted Suger Cookies and a cup of Christmas Cocoa.

[tmthor]

Quote:

Originally Posted by Kevin

CNN:
Billionaire CEO Isaac Larian makes his bid for Toys 'R' US

It was true and it was turned down. The business guy on the radio said the that they want more than that just for the Canadian stores. I also heard that they are holding out for an Asian buyout