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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

#151

Post by pmorici »

jackcosgrove wrote: post #141
dadrian wrote: post #111

Earlier quoted context omitted.

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.

So now's the time to buy Toys R Us stock?

Brandon is still CEO, might want to wait until after he leaves. Also wait until it is clear they aren't going to declare bankruptcy because that usually wipes out share holders.

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

#152

Post by [deleted] »

majormajor wrote: post #118
SilasX wrote: post #110

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. 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. :)

[deleted]

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

#153

Post by m0llusk »

atourgates wrote: post #58
product50 wrote: post #39

Though this may have something to do with Amazon (and retail generally trending online), it does appear that the big culprit here were Bain Capital (and its partners) who took it private in 2005 via leverage buyout and ladened Toys r Us balance sheet with untenable debt from thereon. Apparently, they were paying $500M in interests alone per year vs. reinvesting capital in growth of their offline stores or online reta…

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…

But Toys R Us was not a value adding retailer but rather just another big box warehouse store that did as well at lowering costs on big selections as possible before Internet shopping started to dominate big sales on big selections.

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

#154

Post by speg »

magic_beans wrote: post #21
speg wrote: post #12

Aw man, I've just rediscovered this place with our 9 month old son. Was looking forward to going there as he grew up. Hopefully they can work out some sort of restructuring..

Most kids are just as happy playing with the wrapping paper as with the toy inside. That is to say: your son will be just as happy with something you two might find or make together.

Oh he loves the boxes his toys come in. I was more looking forward to checking out the new LEGO myself ;)

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

#156

Post by Pxtl »

atourgates wrote: post #58
product50 wrote: post #39

Though this may have something to do with Amazon (and retail generally trending online), it does appear that the big culprit here were Bain Capital (and its partners) who took it private in 2005 via leverage buyout and ladened Toys r Us balance sheet with untenable debt from thereon. Apparently, they were paying $500M in interests alone per year vs. reinvesting capital in growth of their offline stores or online reta…

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…

I think the place brick and mortar seems to do well is where the store adds value over just selling merch. You go to Home Depot for expertise as much as for parts. You go to a local boardgame store for recommendations and events. You go to a toy store to get your hands on them and leverage staff expertise and curated inventory.

The only big problem with this approach is showrooming.

Toys r us or best buy carry bad products and are staffed by the lowest bidder. They offer no value over Amazon, so Amazon makes them worthless.

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

#157

Post by throwanem »

beachy wrote: post #138
rb808 wrote: post #66

Earlier quoted context omitted.

>Every time I find something unique that I would have never looked for on Amazon, and often I'm hooked by the tactile act of playing with something that couldn't be fully replicated online. You're absolutely right. The result usually is though that the kid finds a toy they like then puts in on their Birthday/Christmas wishlist from where the Santa buys from Amazon. I like to think I never do this, but if the price is…

Perhaps the end game is that customers will pay $10/family to enter the bricks and mortar store) - not unreasonable, if it has entertainment value/ a cool vibe. Then the $10 is rebated off anything they buy in-store.

I'd love to see a toy store with a cover. But I feel like I might have to hurry.

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

#158

Post by minikomi »

atourgates wrote: post #58
product50 wrote: post #39

Though this may have something to do with Amazon (and retail generally trending online), it does appear that the big culprit here were Bain Capital (and its partners) who took it private in 2005 via leverage buyout and ladened Toys r Us balance sheet with untenable debt from thereon. Apparently, they were paying $500M in interests alone per year vs. reinvesting capital in growth of their offline stores or online reta…

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…

Absolutely. My local bike shop[0] does this amazingly - holding rides, in-store events, very friendly and knowledgable mechanics, lots of in-house produced merch and encourages a culture of customizing and sharing bikes between customers. They do a lot of online work too, with an amazing series of instagram accounts.

[0] http://bluelug.com/

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

#159

Post by yellow_postit »

Larrikin wrote: post #59
mywittyname wrote: post #34

Earlier quoted context omitted.

I still go to B&N because I like to drink coffee and read magazines. I don't pay for the magazines, but I still spend like $10 on coffee and such. Gamestop has no hope for a continued existence with their current business model. Frankly, I'm surprised they are still around.

It's crazy to me that nearly all brick and mortar stores that sell video games took out their biggest draw, in store game demos. It was a huge draw as a kid, I'd want to be in the store even if I didn't expect to get anything, but I always knew what I wanted next since I had played the demo. Do they not exist anymore because most kids are satisfied watching others play on the internet?

Demos for the most part have fallen by the wayside and when they do exist they often come out months after the official launch. The one platform I see consistent demos on however is Nintendo DS.

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

#160

Post by seanmcdirmid »

booleandilemma wrote: post #33
magic_beans wrote: post #19

Earlier quoted context omitted.

Those toy stores were worthless palaces of consumerist made-in-china crap. I'm happy to see them go.

Where did you buy your Star Wars action figures? Your Lego sets? Or did you not play with toys as a kid?

In my day, the Sears X-mas catalog was awesome for that. It was like Amazon in paper form, and I'll always remember the Star Wars or GI Joe figurine scenes nostalgicly.
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