Mandalore76 on 12 April 2018
| CaptainExplosion said: With Toys R Us almost gone, and GameStop/EB Games being uncertain, I'm starting to wonder what surviving retail stores like Walmart and Best Buy can do to avoid being buried by Amazon and Shopify. What do any of you think can be done to save retail stores? |
Toys R Us is not gone because of Amazon. The main reason Toys R Us is gone is because of the 6 billion dollar leveraged buyout of the company that took place in 2005 which instantaneously saddled Toys R Us with 5 billion dollars of debt. The interest payments alone on that debt were 400 million dollars per year. That Toys R Us was able to continue its operations into 2018 under that debt load is nothing short of a miracle. Leveraged buyouts ruin companies.
