Re:Toys 'R' Us Founder Charles Lazarus Dies at 94
by smacktoward on Friday March 23, 2018 @11:41AM
(#16659204)
Because with $5 billion in debt, even if they devoted 100% of that $200 million/year profit to paying off the debt, it'd take 25 years for them to pay it all back -- and that's assuming the debt isn't accruing any interest over all that time. Which is why the parent called the debt load unserviceable.
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Re:Toys 'R' Us Founder Charles Lazarus Dies at 94
by jsight on Tuesday March 27, 2018 @02:11PM
(#16691205)
That still doesn't really make sense. A bankruptcy reorganization would make more sense than a complete shutdown, if the stores themselves were really profitable.
Re:Toys 'R' Us Founder Charles Lazarus Dies at 94
by MarkMc on Saturday March 24, 2018 @12:59AM
(#16664957)
OK so the debt load became unserviceable and the company went bankrupt. But why doesn't the administrator keep the stores running? The creditors would get an asset worth $200 million per year which is better than nothing