Were you a ToyR’Us kid? Despite perhaps us singing the ToyR’Us song, it’s probably safe to say we all grew up. This writer has been to the store a few times since entering adulthood and, the place wasn’t half bad in its contemporary form. Surprisingly, or not to any of you who may be business savvy or in the know, Toys R’Us has filed for bankruptcy and may eventually be shut down.
The current owners of ToysR’Us were none other than Bain Capital which was founded by Mitt Romney. It appears that Mitt is no longer a part of Bain Capital but, it is unclear if he still has any stake in it.
According to a 2012 Rolling Stone article, Bain and Romney’s business tactics were thus:
what most voters don’t know is the way Mitt Romney actually made his fortune: by borrowing vast sums of money that other people were forced to pay back.
If that is true, it goes a long way to explain why Mitt looks like he never worked a day in his life. It is doubtful that look came from “Mormon Magic.”
Bain doesn’t actually seem to do anything besides buy companies and dictate what those companies do. That is if Bain doesn’t chop the companies up or drown them in debt.
When Your Son Or Daughter Can't Find The Toy They Want, Tell Them Why...
What A POS:
I don't want to take my children shopping at Walmart. If I don't get in there by 8:30 AM... I'll just say I look like the cultured king among the rest of the clientele.
Unfortunately, though, there are fewer children around in these, the days of our decline.
What did "Masters of Business and Capital" Bain do though to force ToysR'Us to close?
According To Fortune,
Bain Capital, KKR & Co., and real estate investment trust Vornado Realty Trust bought the toy chain in a $6.6 billion leveraged buyout.
The deal left Toys ‘R’ Us with a $5.2 billion albatross of debt around its neck. The interest payments—$400 million a year—left the company weak and ripe for toppling.
It should be noted that the above mentioned Vornado Realty Trust is a pretty large firm, larger than the Trump Holdings and a partner of the Trump Companies.