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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

#91
post #66

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…

>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…

>I think that manufacturers should sell to physical toy stores at a lower price, and actively make sure online price is the same or higher than instore. but I dont how easy this is to police or even if is legal in some countries.

These days, many brick & mortar stores are a market inefficiency. It's simply cheaper to store & ship out of centralized warehouses (as it goes when you order online) than to ship merchandise to individual stores, which themselves have limited floor space and storage space (resulting in less variety of products) as well as a smaller potential customer-base (only those who live nearby). I don't see why manufacturers should be punished by selling at a lower price in order to sustain outdated business practices.

Stores that provide additional value, having unique goods that can't be found online or have cool atmosphere or such, will be fine.

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

#92
post #82

Earlier quoted context omitted.

> I like to think I never do this, but if the price is much higher even I have a limit. Really? You rationalize going to a brick and mortar international franchise simply because it is physical, instead of going to an online international franchise? Thats the biggest stretch of "buy local" that I've ever been exposed to.

Though it may be an international franchise, it still provides local jobs.

Amazon provides salaried jobs at their regional warehouses, and revenue to the resellers, and revenue to affiliates.

Perhaps the only thing missing is a way to sort results on Amazon by locale.

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

#93

Earlier quoted context omitted.

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.

Star Wars action figure? No way. Lets get some paper towel tubes, markers, and glitter and make our own!

I know right? Such a mom thing to say.

My 10 year old self rolled his eyes so hard.

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

#94
post #17

I have come to the conclusion that it is very hard for a specialty businesses to survive in the era of Walmart and Amazon - which does not bode well long term for places like Barnes & Noble and Gamestop. I hope I am wrong.

I imagine GameStop does very well out of their trade in business. Does Amazon do that in the US?

Yeah, and Amazon often offers better prices with instant gift cards and several days grace period to ship your games to them on their dime. GameStop is only a good deal a few times a year during specific sales.

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

#95

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…

I'm a Star Wars collector and parent who shops at TRU. Beyond debt, the stores are mismanaged the same as most other old-school retailers that are having problems.

For the last Force Friday (the day all the stores get new Star Wars toys and people go out at midnight to purchase), there were numerous reports of TRU's opening at midnight with almost zero new inventory. How does that happen, it's a planned date set months in advance. My TRU also has $200 items that have sat on the shelves for over 2 years.

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

#96

Earlier quoted context omitted.

A place to try before you buy on amazon.

I used to go to Borders constantly, like a hangout. As Amazon grew, I found myself doing exactly this: going to check out the latest releases, flip through the pages, pull out my phone and check Amazon prices. 99% of the time it was cheaper there. Add the book to a wishlist or my cart, put the book back on the shelf and leave empty-handed. I felt horrible when Borders went under, but I do the same at B&N. If brick-n-…

I go to B&N with gift cards a lot. Even with cash, I'm already in the store, and most of what I buy costs less than an average lunch. Amazon might cost less, but not enough less to matter if I happened to pop into the bookstore while walking around the mall.

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

#97

Earlier quoted context omitted.

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.

Star Wars action figure? No way. Lets get some paper towel tubes, markers, and glitter and make our own!

I don't know about the figurines themselves, but I did plenty of this for buildings and vehicles.

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

#98
post #89

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…

Which is a great way for vulture capitalists to steal money from a company. I've seen it before: 1. Take out a giant loan and use it to buy a company by offering slightly more than it's worth. 2. Transfer the loan to the company's books. 3. You now own a company and it didn't cost you anything! You get to be the CEO or sit on the board. And take nice fat bonuses. 4. The company now has to pay off the loan it used to…

Because it doesn't work that way? The banks that fund the "giant loan" in #1 put in covenants preventing any payments to the equity investor (who has to put in their own money) from paying out on the equity until all the debt has been paid off. This is not their first rodeo. The nature of the covenants varies a lot between industries, but the general rule is that the banks won't lend into the deal unless they are guaranteed to get their money back out first (maybe the CEO gets a salary, but it's all specified in the debt documents upfront). That's almost the definition of leveraged finance.

If you want to criticize the leveraged buyout model, a stronger critique is whether the equity investor is putting 10 bets down, where each has a 10% chance of a >10x return, which puts 9 companies at risk.

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

#99
post #75

Earlier quoted context omitted.

I used to go to Borders constantly, like a hangout. As Amazon grew, I found myself doing exactly this: going to check out the latest releases, flip through the pages, pull out my phone and check Amazon prices. 99% of the time it was cheaper there. Add the book to a wishlist or my cart, put the book back on the shelf and leave empty-handed. I felt horrible when Borders went under, but I do the same at B&N. If brick-n-…

This is why many bookshops teamed up with coffee shops. Even Blackwell's in Oxford has Caffé Nero upstairs. Several indie bookshops do it too. Nowadays I just go to the Oxfam bookshop near me. It's cheaper than Amazon marketplace (£2.80 shipping). I'm working through the old Hugo/Nebula winners and pretty much every week there's a new classic sci-fi I haven't read. That and cookery, you can pick up lovely books that…

> I'm also very wary of buying on Amazon, because it's been flooded with cheap crap from Aliexpress.

Seattle here. Only transplants buy from Amazon. We've known about this problem here for years.

You'll usually see native Seattlites buy from B&H, Newegg, or the local shops and use Amazon as a last resort.

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

#100
post #45
post #37

Earlier quoted context omitted.

The web is great when you know exactly what you want to buy. Brick and mortar is great when you’re still deciding. Web is very very far from solving the browsing problem. Sometimes I know I want but have no idea what exactly I want. So you go to the store to look around. Sometimes I also like to ask the sales associate, “I have so and so nephew, what should I get for them?”. Web still sucks at solving the librarian/c…

> Web is very very far from solving the browsing problem. I may be a rarity, but I still miss Blockbuster for this reason.

That's part of why I've got several shelves of DVDs. Browsing is enjoyable, and I was able to pick up a lot of movies cheaply when Blockbuster was going out of business.
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