Private equity bosses took $200m out of Toys R Us and crashed the company, lifetime employees got $0 in severance /
Private equity bosses took $200m out of Toys R Us and crashed the company, lifetime employees got $0 in severance
Source: boingboing.net
Comments: They deserve it. Toys r Us and toys.com lowballed the US toy market to sub-zero margins. I was doing contract work at the time with M.W. Kasch, the largest toy wholesaler in the USA, and these guys were selling below cost to capture market share. They lowered margins to zero, then died.
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Typical behavior of "category killers" in the pre-Amazon days. They assumed they could corner the market on select categories, not realizing more-efficient online operations would displace them, especially if they operated warehouse-sized stores and were heavily leveraged.