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suresh786

Toys R us goes bust (US and Canada)

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The important thing here is to understand what happened:-

  1. Toys r us announce a fairly minor debt issue
  2. trade insurers increase the price of insuring payment for deliveries to toys r us.
  3. Less than a week later toys r us files for bankruptcy due to lack of Christmas stock.. 

Its point 2 that killed toys r us in less than a week and its the same thing that killed both Woolworths and Bhs - once the trade insurers to a dislike to you you've gone...

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20 minutes ago, TheCountOfNowhere said:

Where did the $5B go ?

'The company has been saddled with the vast debt pile ever since buyout firms KKR and Bain Capital took it private for $6.6bn in 2005.'   http://www.independent.co.uk/news/business/news/toys-r-us-could-go-bankrupt-within-weeks-as-it-struggles-to-pay-debts-a7953946.html

So they took the company private - raising 6bn in debt to buy back the shares i assume. Then failed to make any kind of dent in the debt for more than a decade.

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I've had the displeasure to frequent Toys-r-us UK for a couple of years, I hate the place.

Smyths has opened up near us...so we go there now.  Much better, better pricing, more stuff.

How long till the UK one follows ?

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17 minutes ago, TheCountOfNowhere said:

I've had the displeasure to frequent Toys-r-us UK for a couple of years, I hate the place.

Smyths has opened up near us...so we go there now.  Much better, better pricing, more stuff.

How long till the UK one follows ?

Not long. Just like Blockbusters.

Outdated business model that has fallen behind the times. Kids can't be dragged away from the iPads long enough, to trudge up and down a warehouse full of plastic tat they have no interest in.

Its an 'on demand' generation, if they want something, order on Amazon, next day delivery and its there. Parents also begrudge seeing how much more expensive all the tat is to cover paying for the brick and mortar stores and running costs too.

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1 hour ago, sideysid said:

Not long. Just like Blockbusters.

Outdated business model that has fallen behind the times. Kids can't be dragged away from the iPads long enough, to trudge up and down a warehouse full of plastic tat they have no interest in.

Its an 'on demand' generation, if they want something, order on Amazon, next day delivery and its there. Parents also begrudge seeing how much more expensive all the tat is to cover paying for the brick and mortar stores and running costs too.

My kids (8 and 9) love a trip to Smyths.  They don't have to wait for the post and Smyths prices are quite often the most competitive anyway.

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48 minutes ago, Errol said:

$5 billion of debt is just insane. The sorts of figures being thrown around these days are just insane.

But you're forgetting, money has been plentiful, therefore easy to get, therefore worth less (no scarcity). All the money printing has done is effectively devalue the currency. House prices haven't actually gone up in value, the money paying for them has gone down in value.

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  • 294 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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