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comment by user-inactivated
user-inactivated  ·  2627 days ago  ·  link  ·    ·  parent  ·  post: Toys R Us files for bankruptcy in US and Canada

They are going to have to close stores and sell property and hope the hell that there are buyers out there.





user-inactivated  ·  2627 days ago  ·  link  ·  

That doesn't sound right. If that majority of their stores are profitable, closing them would only hurt their chances at recovery. If I had to guess, it's not their lack of income that's holding them back, it's their inability to pay off their debts. Hence, the filing for bankruptcy.

I mean, if I were running that company, the last thing I'd do is close any stores without a clear game plan and good reasons why. Part of the reason why companies prop up unprofitable stores is to keep competitors at bay, yes, but the other part of the reason is that closing stores is a long and expensive process, especially if you have to cancel leases and contracts. If a store is losing your company only $35k a year for instance, but closing it would cost you $100k, it might be prudent to just hold onto it for another year or so and see if it's possible to turn things around.

user-inactivated  ·  2627 days ago  ·  link  ·  

This is an American, publicly traded company we are talking about. Figure out the most reasonable, sensible, long range goals that will generate profits and income for a decade or more, and do the exact fucking opposite in order to maximize the next quarterly report to Wall Street.

user-inactivated  ·  2627 days ago  ·  link  ·  

They got bought out by a private company a few years back. The only people they have to answer to are the banks that give them money and distributors that give them products. Otherwise, if that weren't the case, I'd agree with you 100.99%!

user-inactivated  ·  2627 days ago  ·  link  ·  

Well, fuck me

Bain Capital owns 1/3 of them. AKA Mitt Romney's hedge fund. Huh.