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Toys.com owner to shut down?! (Toys R Us)

Collabo Inc

Collabo
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Ya, it's a shame. I honestly think they could have avoided bankruptcy if they utilized their online properties better. I remember Toys.com got neglected due to upper management not having a clue!
 

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The biggest assumption behind a debt-financed takeover is that the company can cut costs to improve cash flow and thus pay the interest. But behind that assumption is an even bigger assumption. That the marketplace won't change dramatically. The KKR and Bain Capital leaders assumed they could shrink Toys R Us in a way that would lower operating costs. They also assumed they could sell some under-utilized assets to raise cash. They did not assume they would need contingency money if competition, and the marketplace, changed in some unplanned way.

https://www.forbes.com/sites/adamha...ncial-planning-creating-failure/#63bf19558eab
 

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