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| Toys r us was still profitable when they sold. Yes, they needed to update their business model. But after the leveraged buyout they had so much debt they were dead in the water. The PE firm leveraged their value for they loan, and then stuck that loan onto Toys r us. Leaving them with huge debt payments they hadn't had before, and huge rent Payments after the PE company sold or transferred the real estate to itself. So they basically just bled Toys r us for cash. It's actually amazing it went as long as it did. This was a business model that needed tweaking and the shived it. | |
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And another thing.. Trumps tax cuts 49% benefit the top 5% of earners
