Toys R Us closing multiple US stores! 3-15-2018 - all stores expected to close

Discussion in 'Transformers News and Rumors' started by Prime135, Jan 23, 2018.

  1. Fallen Jedi

    Fallen Jedi Well-Known Member

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    Have you ever visited Toys R Us during a Lego build and takeway event? Kids and parents are lined up around the stores here before the event starts. Hasbro could do similar promotions, or have characters visit stores.
     
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  2. Fallen Jedi

    Fallen Jedi Well-Known Member

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    I live in Canada, in Ottawa to be precise and our Toys R us (near where I live) does very well. I find the staff very helpful and courteous and, for the most part, the shelves are well stocked. They have the best selection of lego in the city and that includes Wal-Mart (which is really starting to look like a welfare department store). The one area that lacks, is the Hasbro display. Transformers are rarely fully stocked (sometimes nearly empty) and I don't know if it is because they are flying off the shelf or were never received. I don't know whose fault that is, but Wal-Mart is the same. So while Toys R Us might be in bad financial shape (not in Canada apparently) perhaps it is not ALL to do with Toys R Us, but perhaps that actual manufacturers1supliers share some of the blame.

    At any rate, I don't think Toys R Us is going to fold in North America, they will restructure, close stores and come out weaker, but viable. New store designs here in Canada are apparently doing quite well, so I still have hope.
     
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  3. G.B. Blackrock

    G.B. Blackrock Autobot Ally

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    I disagree, at least in regard to the intensity of the trouble. Companies that Bain "went after" may have been vulnerable, but in many cases could have pulled out had Bain not gotten involved.
     
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  4. G.B. Blackrock

    G.B. Blackrock Autobot Ally

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    I'm sure Hasbro could, but it would have to be something Hasbro thought benefitted them. They're hardly likely to do this because it would help TRU....
     
  5. Fallen Jedi

    Fallen Jedi Well-Known Member

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    Certainly does not hurt Lego sales... Admittedly, I do not know much about retail sales, but demand needs to be driven. It Toys R Us sells more, then they NEED more and then that benefits Hasbro. Plus, Hasbro needs B&M, all the manufacturers do. We can talk about online sales all day, but unless you have never seen a kid begging at a Toy store, you will never understand how valuable having all the products immediate available is to a brand or a store. so many impulse purchases are made at B&M. I would speculate that there are not a lot of kids making impulse purchases of transformers on line.
     
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  6. WishfulThinking

    WishfulThinking "Don't touch it! It's evil!"

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    How so? I'd postulate that most Bain purchases are so far gone that the only company interested in buying it out IS Bain Capitol (or similar groups) with the intent of making a huge pile of money at the end of the day. Any other company would stay away because the risk versus reward is too great.
     
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  7. backhawkdown

    backhawkdown Well-Known Member

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    That’s not just the TRU policy of your local store, it’s the policy of every TRU and major retailer including Target and Walmart. You can either bring in a printed or online ad showing that all toys of a certain brand are on sale, or if it isn’t an ad and only applies to a specific figure it has to be the figure you are buying. The point of a price match is that you can buy the toy somewhere else but are willing to give the other retailer your business if they match the price. But if Starscream is on sale only why would they give you that price for Grimlock?
     
  8. G.B. Blackrock

    G.B. Blackrock Autobot Ally

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    I don't assume (as you apparently do) that a buyer would even be necessary.... TRU could have just gone through bankruptcy at some other point, but without the crushing debt that Bain gave them, they might have pulled out better.

    (TRU still *might* pull out, of course)
     
  9. WishfulThinking

    WishfulThinking "Don't touch it! It's evil!"

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    The problem is that they already HAD crushing debt or else they wouldn't have been in bankruptcy. An investment firm was really the only way out of it...so yes, the buying company was necessary. So, it was a matter of die now or die later...they chose later. It didn't HAVE to be a Bain Captiol (or similar) investment company...but apparently there wasn't another one willing to take the risk to bail the company out. No one wants to make a pact with the devil if they don't HAVE to...only if they're desperate.
     
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  10. G.B. Blackrock

    G.B. Blackrock Autobot Ally

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    Again, we simply disagree. To the best of my knowledge, ToysRUs wasn't in bankruptcy at the time that Bain bought them. That's really important.
     
  11. Nevermore

    Nevermore It's self-perpetuating a parahumanoidarianised!

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    Let's take a look at the numbers here:

    Depending on the source, Bain bought TRU for $6.6 or 7.5 billion dollars in 2005.
    TRU's debt was 5.2 billion dollars as of September 2017.

    Now correct me if I'm wrong, but to me this means TRU would have made a profit of 1.4 or even 2.3 billion dollars in the 12 years in between if they didn't have to pay for their own buyout. And that's not even taking interest into consideration, or any hypothetical additional money Bain has been funneling out of TRU along the way.

    Also, having to pay off a debt means less money to invest back into the company.
     
  12. Hexatron

    Hexatron Plastic crack junky

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    Right? The only "large" (compared to other Canadian sites) Canadian tf site is Automaton and everything good is always out of stock almost instantly because they don't make sizeable orders. Where I'm at its Tru, Walmart, bite 20-30 dollars shipping from US, or wait a month with free shipping from China. If I was in the states I'd never buy figures in person lol.
     
  13. smkspy

    smkspy is one nice fucking kitty

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    WM won't price match anymore and they specifically designed their alternative "savings catcher" app to only apply to local ads while skipping online competitors, specifically Amazon.
     
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  14. WishfulThinking

    WishfulThinking "Don't touch it! It's evil!"

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    What was Toys R Us's debt load in 2005? Without the buyout, how far back would they be WITHOUT the buyout? Not to mention, if they hadn't been purchased, the weight of the debt would have crushed the company in the 2007 recession. I still think that if Bain hadn't purchased TRU in 2005, it would have died by 2009. In fact, there's a good chance that the recession bought the company time while being owned by a Bain group as cashing out property between 2007 and 2012 would have been suicide for investors.
     
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  15. stad

    stad Well-Known Member

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    Despite the constant roar of "Bain" it was an equal buyout/merger of the three companies, KKR, Bain, and Vornado. There was only a rival capital company that they were bidding against.

    Toys 'R' Us agrees to $6.6 billion buyout by KKR group - Mar. 17, 2005

    They were already in trouble due to loss of market share (this is where the cries of Walmart and later Amazon come in) and were considering splitting up the company. They had already lost/closed all of their Kids R Us and Imaginarium spinoff stores, and were looking to spin off Babies R Us - which, at the time accounted for 75% of the company's operating income despite only being 15% of total sales.
     
    Last edited: Mar 2, 2018
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  16. G.B. Blackrock

    G.B. Blackrock Autobot Ally

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    Please feel free to understand any use I may make of the word "Bain" to actually mean "Bain, KKR, and Vornado." I'm not going to type all that out each time.

    Again, if Bain (please see note above, stad) hadn't bought TRU in 2005, it means that TRU might have had to declare bankruptcy earlier (probably in the 2007 recession you mention). That doesn't mean that TRU would have gone out of business sooner. They could well have been in a better position to have their debts handled by the bankruptcy process at that time, because the debt wouldn't have been as great in 2007 as it is now because of Bain's involvement.
     
    Last edited by a moderator: Mar 2, 2018
  17. marvel b

    marvel b Bearer of the Matrix of Smash

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    So quick question. did they release the list of the NEW closing stores yet?
     
  18. stad

    stad Well-Known Member

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    Oh, no worries! I was just putting it out there, as some are attempting to make a political point out of it (although Romney ran back in 2012, so it's not too timely.) I actually thought it was just Bain, due to it being thrown around here - even after I found out it was a partnership of 3 companies I still thought Bain was the lead, so I'm just trying to put more info out there is all.
     
  19. AzT

    AzT Azlaroc, Yeargroup 431 Moderator News Staff TFW2005 Supporter

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  20. Shin Densetsu

    Shin Densetsu I WILL DESTROY YOU Super Mod

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    Bringing up Bain Capital on my part wasn't due to political reasons but their past business practices and how some of the company's they bought out and/or invested in are now bankrupt. Political discussion need not be a part of this.
     
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