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Old 2017-09-22, 03:03 PM   #11
Warcry
Likes Beast Wars toys. A lot.
 
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Winnipeg, Manitoba, Canada
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Quote:
Originally Posted by inflatable dalek View Post
It is one of those hard to care about the company things, but still a shame for the staff who have to put up with their increasingly idiotically run management driving a once successful firm into the ground (I am not projecting).
After doing some more reading, it turns out that even with all the bad calls they've made lately the stores themselves are actually still turning a profit. The company is sinking because Mitt Romney and friends bought them in the 90s using borrowed money, then transferred the debt to TRU after the sale went through. So TRU has been making hundreds of millions of dollars in interest payments every year on money that they didn't actually borrow, while not being able to pay off the principle because their corporate overlords were more interested in extracting every penny they could from the business in management fees and dividends than they were in actually turning the company into a viable long-term asset. Which makes the whole thing even sadder for the folks that work there, because they're actually doing a good job but they're still probably going to wind up out of work because this sort of cartoonishly evil BS is somehow more profitable for the owners than actually running the company in good faith.

The extra sad thing is that the exact same group did the exact same thing to KB Toys, and that company eventually smothered under the weight of the debt and died off.
 
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