Quote:
Originally Posted by ZodWallop
I'm a very liberal 'let's save everyone and hug them too!' type. But really, Toys R Us or [insert company name here] wouldn't have been in that position if their business was run well in the first place.
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No. Leveraged buyout vultures find companies that are established, have good credit and then buy a controlling interest. Then they take out huge loans on the good name of that company, and milk it as it dwindles because all it can afford to do now is pay the interest on the freaking loan the vultures burdened it with. Even in it's last year, Toys-R-Us was bringing in $11 billion dollars. That's why the banks have decided (or at least are mulling) bringing back Toys-R-Us. They know that, without the vulture debt, Toys-R-Us could be a going business again. And the toy makers are desperate for a real retail toy outlet.