Quote:
Originally Posted by rcentros
Doesn't change the fact that the leveraged buyout vultures used the value of the company to buy it out. Nor does it change the fact that, when these vultures bought Toys-R-Us, the company had $2.3 billion in cash. Nor does it change the fact that they charged exorbitant consultant fees. Nor does it change the fact that Toys-R-Us, thanks to the loan the leverage buyout vultures used to buy it, were paying about a half a billion in interest per year, for fifteen years. This is how leverage buyouts work. They should be illegal.
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None of that makes Toys R Us financially viable either. They hadn't been doing well since well before they were bought out. There's a reason they were up for sale in the first place. They continued to not do well, though they did try various things like the kids and baby stores.
The leveraged buyout is a nasty bit of business, but Toys wasn't doing well, just like B&N aren't doing well. If those same investors do the same thing to B&N will it suddenly be their fault the company goes out of business?
On the upside, all this talk of leveraged buyouts has prompted me to add the 1963 Japanese classic
High and Low to my Netflix queue.