Live data from Hacker News

Toys ‘R’ Us Plans Bankruptcy Filing Amid Debt Struggle

bloomberg.com

161–170 of 276 posts

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

#161
post #145

Earlier quoted context omitted.

Leadership is a thing. It really matters. An effective leader can be a force multiplier for everyone in the organization that reports to them, directly or indirectly. An ineffective leader can literally bankrupt an organization.

No one could forget the force of Steve Jobs that brought back Apple and that ambitious Travis Kalanick who built Uber empire.

I would replace Kalanick with Bill Gates in this idea.

Kalanick is a dickhead who lasted a few years before getting busted for it.

Both Jobs and Gates really built shit for a very long time.

You might not care, but the Microsoft empire was real once upon a time. Gates was fucking good at his job for his entire career. Jobs had some ups and downs in terms of results. Putting Kalanick in the same category as either of them is really really weird.

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

#162
post #10

Earlier quoted context omitted.

Do we really want our kids to enjoy fluorescent-lit warehouses full of cheap crap that will be thrown away a couple months after it's bought?

Haha sounds like your kids will be spending most of their time at their friends house with the "cool" parents They will only appreciate your dedication to environmentalism when theyre older

[deleted]

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

#163
post #10

Earlier quoted context omitted.

Do we really want our kids to enjoy fluorescent-lit warehouses full of cheap crap that will be thrown away a couple months after it's bought?

You're a bit too cynical even though the subject is interesting. Childhood is full of crap that is magical to the eyes of kids. I wished I and others had clearer, cleaner and more serious things to grow and learn; but in a way I'm not sure it's neither both possible nor worth it. And similarly the notion of "place" is melting in this era. No more music shop, useless, you can buy a Trillion things on whatever. Same fo…

Local will re-emerge with tighter communities. Suburbs are unsustainable wastes and we'll have to adapt by reforming walkable cities. Kids will have tons to explore at that point, like they used to.

AR/VR will enable more spatially interactive technologies as well. Pokemon Go was a fad but I think it heralds a yet-to-come wave.

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

#164

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'm amazed and saddened to find this written here. What you read in the parent is the content of a social media slander campaign from years ago led by a blogger named Brian Cook (who runs a blog popular with University of Michigan sports fans called MGoBlog), apparently because Brandon fired Cook's favorite coach. Sorry this is so long, but I can't watch a good person's reputation be slandered.

Dave Brandon was a class act and very talented leader and executive. Note that despite the sports blogger's considered opinion (as paraphrased in the parent), Brandon's reputation in the business community is exceptional. Per Bloomberg: Brandon had run Domino’s for 11 years and gained a reputation as a turnaround artist. He helped shepherd the pizza chain, then owned by Bain Capital Partners, through the largest initial public offering in restaurant history in 2004. He got the Domino's job because Bain - no lightweights themselves - thought highly enough of Brandon's CEO performance at Valassis Communications to hire him to run their foundering investment in Dominos. Then Toys R Us hired him. How many people get hired to three significant CEO jobs? Why didn't someone ask the sports blogger? I'm no Fortune 500 CEO, but I know more about business than Cook and I was very impressed by what I saw of Brandon from the outside - a natural, thoughtful, intelligent, highly skilled, high-integrity manager and executive, the kind of manager you seek out to work for.

Brandon left the CEO job at Domino's, a company with billions in revenue, global operations, and >100,000 employees, and where he was quite successful, to rescue from trouble the $100 million, ...

Brandon's performance:

Before him, the athletic department was in the red, the football team was losing (both very unusual situations at U. of Michigan, an elite blue-chip program - like Google search becoming mediocre and unprofitable), and far worse from the perspective of then-Michigan supporters, corruption was brewing. Big-time college sports is a magnet for corruption, with billions of dollars tossed around ostensibly amateur sports, unpaid athletes, and mostly non-profit institutions. U. of Michigan's great tradition and culture, at the time, was that it's an educational institution first; it priorities were its student-athletes and its values ahead of money - integrity first and it wins: The football program is roughly tied for the most successful in college football history (with some parochial school in Indiana). Many say these things; Michigan really did them.

Brandon returned to restore all that. He fired Cook's favorite coach, Rich Rodriguez, who was the only Michigan football coach since 1900 with an overall losing record, including arguably the team's worst season ever; he also was responsible for Michigan football being penalized for its only NCAA violations (i.e., college sports ethics violations) in its history, and was involved in odoriferous situations off the field. Firing was not a hard call, especially for a job among the most sought-after in football. Brandon put the athletic department back on track; he emphatically put the student-athletes first - and before the football fans, as he should have, but earning the enmity of many fans who could care less about the education and welfare of the unpaid students on the field - and he restored the department's integrity and profitability (which soared). He also hired a football coach with exceptional integrity and talent for mentoring college students (see Brady Hoke, below).

Brian Cook, the blogger, is easiest described as like Rush Limbaugh; he likes to inflame his followers, who can be sycophantic, with media campaigns based on sensational lies and half-truths, and in my experience has few limits. For example, early on Cook disliked what a ~13 year old was posting in the MGoBlog forums, so Cook doxxed him, including his home phone number, and Cook's classy followers went after the child (I still regret not calling the state Attorney General's office). He lies brazenly: I once read a newspaper article saying a famous basketball coach 1) called the Athletic Director (the one prior to Brandon, who Cook also attacked) about the Michigan job and left a voicemail; 2) the coach spoke to his wife, who was adamant that she didn't want to move to a new town (coaches' families move constantly); and 3) the coach decided against the job. Cook quoted the article but conveniently deleted part 2 - in a block quote, no less - and accused the Athletic Director of losing the coach because he was out of touch. It was as brazen as it sounds. Cook and his followers also attacked, maligned, and sometimes chased out of town multiple coaches and other people. I'll add that Cook as no experience in sports AFAIK, either playing or coaching, or in business or in anything but blogging about sports at his former college.

...

Regarding another person's reputation: Brady Hoke, the football coach Brandon hired, was (is) one of the great class acts in the sport. He put the (unpaid) student-athletes first, as students and people, and football second, and Hoke openly said it - an amazing thing to find in college. High school kids - and their parents - who decided against going to Michigan would talk about what a class act he was and nothing like the snake oil salesmen that populate the sport. The students he brought to Michigan - Hoke was among the best recruiters in the nation - were in tears when he was fired, and for years after that - when he was long gone and they had a new coach - you could read them (and their parents) regularly talking about what a "great man" (that phrase is used repeatedly) he was and how much he helped changed their lives. His peers raved about him, and the top coaches in the country wanted to work for him (e.g., the defensive coordinator of the Baltimore Ravens, at the time arguably the top such job in the NFL, left Baltimore to work for Hoke, then starting his first major college job). Unfortunately, Hoke wasn't a great offensive coach and the team was around .500 by the time he left. He was also maligned and attacked by Cook because, AFAICT, Hoke was Brandon's guy and replaced Cook's favorite.

Sometimes, the Rush Limbaughs of the world succeed, the good people lose out, and the slander, sadly, follows them even to Hacker News.

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

#165
post #71
post #53

Earlier quoted context omitted.

Same - except for me it was also Capsela (now called IQ Key), a bunch of cheap plastic crap that let you engineer modular machines. I think the medium that kids play with 'toys' has changed with tablet and phone devices. Now they're solving puzzle apps and building Minecraft cities - whether or not that's a good or bad thing, I'm not sure, but it doesn't bode well for toy stores.

I think so too, but I wonder about the long term effect that doing everything in the virtual world will have on abilities in the physical world. It's extremely anecdotal, but my little brother, who almost exclusively plays Minecraft, seems to have a fantastic imagination but very poor fine motor skills. He has trouble doing anything physical that requires not using a keyboard and mouse.

I feel like there's a point far into the future where they might consider the current technology age as a turning point in our evolution as biological beings. Consider a future 1000 years from now, after we've spent a thousand years interacting with the virtual world. Imagine a world where the virtual is indistinguishable from the physical - where the virtual IS physical, and the physical IS virtual. Virtual worlds that are infinitely customizable, creating scenarios for your mind that are infinitely more compelling than what you can experience in the purely physical realm. Reset your life to any point in time. Fast forward. Rewind. Play through every conceivable event. Travel to any destination you can imagine. Meet anyone or any creature. BE any creature. Live an existence that can be shaped by your very whim; reality could be whatever you wanted it to be, changes made as quickly as thoughts come and go. For all intents and purposes, you are the architect of your own reality. God.

Computer chips implanted into the body to regulate vital functions. Nanobot technology to repair or modify biological cells. Countless methods to sustain and prolong your biological life.

Eventually the biological dies, but the virtual simulation is not interrupted. Instead, your consciousness is uploaded to the world's mainframe server, where your mind is allowed to continue on it's journey of self-discovery within the virtual world. You and your loved ones can continue to interact virtually, forever. Where you can continue to explore, to learn, and to experience life long after your death.

You are virtually immortal.

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

#166
post #7

It really is unfortunate that stores I grew up with as a kid, ones like KB Toys, Montgomery Wards, Service Merchandise, Blockbuster, Kmart/Sears, and now even Toys"R"Us have gone by the wayside for one reason or another. It both depresses me and blows my mind that future generations may not even be able to experience Brick and Mortar.

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

you can buy the same stuff from Amazon... or Walmart...

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

#167
post #109

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?

Dave Brandon had an exceptional track record and the business community thought so, maybe still does for all I know. He was just disliked by a popular (in the University of Michigan community) sports blogger. See my post below.

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

#168

Can someone explain why it would be loaded up with debt on going private?

Bain (and their horrible ilk) put up a tiny amount of capital to secure huge loans. They used those loans to buy the company, taking it private. Once it is private they can do whatever they like with it; they pay themselves back for the loans by loading the company up with debt (and then some to ensure an immediate profit). They cut everything to the bone, fire as many people as possible, then spin the husk back out…

>The part I don't understand yet is who is the dumb money buying shares in these hollowed-out debt-laden husks from the private capital vultures? It almost always ends up badly.

Is this based on reliable statistics or on highly visible anecdotes? Perhaps the "dumb money" isn't as dumb as you think.

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

#169

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.

It disappeared before that, under Rich Rodriguez. Rodriguez lead Michigan to maybe the worst season in its history (2008), his recruiting was awful (I forget the number, but his predecessor and successor were among the best in the nation, as Michigan always is), and he is the only Michigan head coach since 1900 with an under-.500 record overall. He never beat either of Michigan's rivals, Michigan State and Ohio State, and earned Michigan it's only NCAA sanctions ever.

Brandon fired Rodriguez - an easy call but one which earned the enmity of a sports blogger who loved the coach and maligned Brandon (which is what the post above is really about; see my response below) - and hired Brady Hoke. In Hoke's first year, they went 11-2, beat Ohio State, won a bowl game, and the team's defense went from ~110th in the nation to the top 20. Hoke did slowly decline after that, and was fired after an under-.500 season; his weakness was offense, which he just couldn't raise to an elite level.

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

#170
post #25
post #10

Earlier quoted context omitted.

Do we really want our kids to enjoy fluorescent-lit warehouses full of cheap crap that will be thrown away a couple months after it's bought?

There's something to be said for getting rid of excessive waste and unnecessarily large warehouses of "cheap junk", but it's also worth remembering that toys play a very important part in teaching children fundamental skills like hand-eye coordination, simple problem solving, fostering imagination, etc. It's a game of "what-ifs", but I'm fairly confident in saying I wouldn't be pursuing the career I am now if I had n…

We got along fine without them for tens of thousands of years ;)
Post reply on HN