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Toys ‘R’ Us Plans Bankruptcy Filing Amid Debt Struggle

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Re: Toys ‘R’ Us Plans Bankruptcy Filing Amid Debt Struggle

#111

Post by dadrian »

dadrian wrote: post #104

The CEO of Toys 'R' Us as of 2015 is Dave Brandon. He was the former CEO of Dominoes Pizza. After he left Dominoes in 2009 is when they started the "We used to suck, we don't anymore, please come try us again!" advertising campaign. After Dominoes, Dave Brandon was the athletic director at the University of Michigan. During his time as AD, he managed to alienate the majority of the fan base, hire a coach who got wors…

I'll also note that in the time since Dave left Dominoes, their stock has outperformed Amazon, Google, Microsoft and Apple, with slightly under 12x returns in the last 10 years.

Since Dave left Michigan, the interim AD hired Jim Harbaugh, and the football program is now regularly in top 10 in the nation.

Re: Toys ‘R’ Us Plans Bankruptcy Filing Amid Debt Struggle

#112

Post by needsilence »

bllguo wrote: post #109
dadrian wrote: post #104

The CEO of Toys 'R' Us as of 2015 is Dave Brandon. He was the former CEO of Dominoes Pizza. After he left Dominoes in 2009 is when they started the "We used to suck, we don't anymore, please come try us again!" advertising campaign. After Dominoes, Dave Brandon was the athletic director at the University of Michigan. During his time as AD, he managed to alienate the majority of the fan base, hire a coach who got wors…

Are there non-cynical explanations of how someone with such a terrible track record gets hired? Maybe a dearth of alternative CEOs? Or is the reality as bad as it appears?

I mean, it's happened ten billion times before, but if that's not enough evidence for you...

Re: Toys ‘R’ Us Plans Bankruptcy Filing Amid Debt Struggle

#113

Post by vonkale »

From SEC (shortened):

+-----------------+--------+--------+--------+

| In millions | 2017 | 2016 | 2015 |

+-----------------+--------+--------+--------+

| Net Sales | 11,540 | 11,802 | 12,361 |

| COGS | -7,432 | -7,576 | -7,931 |

| Operating Earn. | -460 | -378 | -191 |

| Interests | -455 | -426 | -447 |

| Total loss | -6 | -156 | -452 |

+-----------------+--------+--------+--------+

1. Their revenue is quite stable but decreasing 2. Their EBIT is positive and increasing 3. Their operating cashflow is negative but increasing 4. So they seem to be running out of cash... 5. They cannot lend more with such bad terms eg. 12% interests.

Re: Toys ‘R’ Us Plans Bankruptcy Filing Amid Debt Struggle

#114

Post by ars »

icelancer wrote: post #86
ars wrote: post #42

Earlier quoted context omitted.

Yes we do. Because right now the only thing kids want to do is click buttons on a computer.

That is not that much different than playing with mindless toys. Research on device usage with children is mixed to say the least.

Most online games are skinner boxes. Just press button over and over. With basically no creativity - or even the possibility of it.

A physical game is not like that. For a young child there is no such thing as a "mindless toy".

Re: Toys ‘R’ Us Plans Bankruptcy Filing Amid Debt Struggle

#115

Post by narrator »

bllguo wrote: post #109
dadrian wrote: post #104

The CEO of Toys 'R' Us as of 2015 is Dave Brandon. He was the former CEO of Dominoes Pizza. After he left Dominoes in 2009 is when they started the "We used to suck, we don't anymore, please come try us again!" advertising campaign. After Dominoes, Dave Brandon was the athletic director at the University of Michigan. During his time as AD, he managed to alienate the majority of the fan base, hire a coach who got wors…

Are there non-cynical explanations of how someone with such a terrible track record gets hired? Maybe a dearth of alternative CEOs? Or is the reality as bad as it appears?

Who's on the board that hired him? Did they have a pre-existing personal relationship from a frat or something? Getting to the bottom of this would probably inform a good stock shorting strategy.

Re: Toys ‘R’ Us Plans Bankruptcy Filing Amid Debt Struggle

#116

Post by nicko9 »

dadrian wrote: post #104

The CEO of Toys 'R' Us as of 2015 is Dave Brandon. He was the former CEO of Dominoes Pizza. After he left Dominoes in 2009 is when they started the "We used to suck, we don't anymore, please come try us again!" advertising campaign. After Dominoes, Dave Brandon was the athletic director at the University of Michigan. During his time as AD, he managed to alienate the majority of the fan base, hire a coach who got wors…

It's high time people realize something about these positions. Being at the top of a gigantic mature hierarchy in a complex world is more a function of legacy than utility. John D Rockefeller or Thomas Edison were the single BRAIN that shaped and directed where their orgs went. Today's leaders in govt or in the private sector or more like a single neuron most of whose time is engaged in constant power struggles for survival. Nobody with any real sense wants to be sitting in these chairs other than the mindlessly ambitious. CEO's are propped up. Cause we are still hardwired to believe in kings, popes and heroes taming complexity we can not handle.

With data flowing in like never before on the utility of these roles it will get increasingly and unavoidably clear in the next few years on the over importance we attach to "leadership". We are not on the Serengeti plains anymore.

Re: Toys ‘R’ Us Plans Bankruptcy Filing Amid Debt Struggle

#117

Post by GFischer »

SilasX wrote: post #110
atourgates wrote: post #58

Earlier quoted context omitted.

Toy stores are a _great_ example of opportunity for brick and mortar. Just like book stores, they operate in a space where curation, discovery and the physical experience adds real value. The town I grew up in has a great independent toy store, and I make it a point to shop there every time we're in town. Every time I find something unique that I would have never looked for on Amazon, and often I'm hooked by the tact…

>Toy stores are a _great_ example of opportunity for brick and mortar. Just like book stores, they operate in a space where curation, discovery and the physical experience adds real value. Not anymore. Customers just use them as a free showroom and then buy it cheaper off Amazon.

It cuts both ways, there's "webrooming" too:

https://www.shopify.com/retail/why-retailers-should-embrace-...

It does cut into their margins, they can't be way more expensive than online.

Re: Toys ‘R’ Us Plans Bankruptcy Filing Amid Debt Struggle

#118

Post by majormajor »

SilasX wrote: post #110
atourgates wrote: post #58

Earlier quoted context omitted.

Toy stores are a _great_ example of opportunity for brick and mortar. Just like book stores, they operate in a space where curation, discovery and the physical experience adds real value. The town I grew up in has a great independent toy store, and I make it a point to shop there every time we're in town. Every time I find something unique that I would have never looked for on Amazon, and often I'm hooked by the tact…

>Toy stores are a _great_ example of opportunity for brick and mortar. Just like book stores, they operate in a space where curation, discovery and the physical experience adds real value. Not anymore. Customers just use them as a free showroom and then buy it cheaper off Amazon.

If a toy store can't figure out how to take advantage "but MOMMMMMM I want it NOWWWWWWWWWW!" then little kids are far more mature than they were a few decades ago. :)

Re: Toys ‘R’ Us Plans Bankruptcy Filing Amid Debt Struggle

#119

Post by debacle »

icelancer wrote: post #83
svantana wrote: post #68

Earlier quoted context omitted.

> a lot of smaller toy retailers (both online and offline) will spring up to take Toys r Us' space Why would anything take its space? It's still a highly valuable brand, that I'm sure the next owner(s) will want to leverage to the fullest.

>>It's still a highly valuable brand Is this true? I don't really connect the brand with value anymore. I think that legacy was firmly in the 1980s-1990s. There's some value there, but I doubt it is highly valuable.

I don't believe so. Toys R Us makes most of their money during the holiday season, and most of their stuff is overpriced crap. They're regularly 20-30% more expensive than Target, which in itself is already overpriced compared to BezosCorp.

Re: Toys ‘R’ Us Plans Bankruptcy Filing Amid Debt Struggle

#120

Post by aswanson »

dadrian wrote: post #104

The CEO of Toys 'R' Us as of 2015 is Dave Brandon. He was the former CEO of Dominoes Pizza. After he left Dominoes in 2009 is when they started the "We used to suck, we don't anymore, please come try us again!" advertising campaign. After Dominoes, Dave Brandon was the athletic director at the University of Michigan. During his time as AD, he managed to alienate the majority of the fan base, hire a coach who got wors…

Was wondering why Michigan disappeared from national contention in football during that era. Thanks for the explanation.
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