(09-19-2017, 02:14 PM)Warren Dew Wrote:

(09-19-2017, 12:27 PM)pbrower2a Wrote:

Quote:One of the biggest names in brick-and-mortar retail has filed for bankruptcy protection.

Toys R Us, which has some 1,600 Toys R Us and Babies R Us stores around the world, filed for Chapter 11 in a Virginia court late Monday over $5 billion in long-term debt. The company said the debt had prevented it from investing to compete in what it called “an increasingly challenging and rapidly changing retail marketplace worldwide.”

Toys R Us plans to continue to honor gift cards, rewards points, warranties and return policies. It also said all of its stores would operate “as usual.” However, that may not last.  

Underperforming stores will close, The Wall Street Journal reported, and those that remain open may be reconfigured to include “experience-based” elements such as play areas.

There was no word yet on how the moves would affect the company’s nearly 65,000 employees.

http://www.huffingtonpost.com/entry/toys-r-us-bankruptcy_us_59c0a8a4e4b087fdf50789a6?ncid=inblnkushpmg00000009

Demographics may be killing the toy business -- fewer children. Toys that used to be expensive are cheap, especially if they have electronic bases. The business is ferociously competitive, as shown by prior bankruptcies of Kay Bee Toys.

I'm also guessing that children are no longer showing as much attention to 'status symbols'. It is also telling that Toys 'R' Us goes out of business about as the last Millennial kids are in the toy 'market'.

This is a restructuring, not a liquidation.  The store will stay around.

I think it's more of a competitive market driving a poor competitor out of business than a sign of industry decline.  The shopping experience at Toys'R'Us is fine for the kids, but terrible for the parents:  the store arrangements seem like they are specifically designed to make parents lose track of their kids if they let them get more than about 20 feet away.  Contrast that with the Lego Store, which is not only arranged with good sight lines for keeping track of kids, but also has a minder at the front of the store to prevent kids from escaping.

I'm happy to take the kids to the Lego Store or even the Barnes & Noble toy section, but if we're going to Toys'R'Us, I generally require them to know exactly what they are buying, and to agree not to browse, so as to minimize the chances of getting separated.

(09-19-2017, 12:27 PM)pbrower2a Wrote:

Quote:One of the biggest names in brick-and-mortar retail has filed for bankruptcy protection.

Toys R Us, which has some 1,600 Toys R Us and Babies R Us stores around the world, filed for Chapter 11 in a Virginia court late Monday over $5 billion in long-term debt. The company said the debt had prevented it from investing to compete in what it called “an increasingly challenging and rapidly changing retail marketplace worldwide.”

Toys R Us plans to continue to honor gift cards, rewards points, warranties and return policies. It also said all of its stores would operate “as usual.” However, that may not last.  

Underperforming stores will close, The Wall Street Journal reported, and those that remain open may be reconfigured to include “experience-based” elements such as play areas.

There was no word yet on how the moves would affect the company’s nearly 65,000 employees.

http://www.huffingtonpost.com/entry/toys-r-us-bankruptcy_us_59c0a8a4e4b087fdf50789a6?ncid=inblnkushpmg00000009

Demographics may be killing the toy business -- fewer children. Toys that used to be expensive are cheap, especially if they have electronic bases. The business is ferociously competitive, as shown by prior bankruptcies of Kay Bee Toys.

I'm also guessing that children are no longer showing as much attention to 'status symbols'. It is also telling that Toys 'R' Us goes out of business about as the last Millennial kids are in the toy 'market'.

Quote:Given that, it's somewhat ironic that Bloomberg notes this morning how important Toys "R" Us is to vendors and how Mattel and Hasbro couldn't possibly allow the company to liquidate.

   Rest easy, kids. Toys “R” Us Inc. isn’t going anywhere, at least not if the makers of Barbie and Transformers have their way.

   

   Yet, the company, which operates about 1,600 stores globally, will likely survive because manufacturers such as Mattel Inc., Hasbro Inc. and closely held MGA Entertainment Inc. need the last remaining toy chain. These vendors are eager for whatever remaining leverage they have against the might of Amazon and Wal-Mart, the bane of all companies focused on a single category of shopping.

   

   “Oh my God, they are very important, and people don’t understand,” Isaac Larian, founder and chief executive officer of MGA, said of the toy chain. “That’s the only place where kids can go and just buy toys. There is no toy business without Toys ‘R’ Us.”

   

   In many respects, suppliers have been propping up Toys “R” Us for years, according to Moody’s Corp. analyst Charlie O’Shea; they give the chain exclusive products during the holidays and funds for promotions to help it compete with the general merchandisers. The manufacturers offer this support because they want a place to sell toys at full price, year round. Major brands have also been funding an overhaul of Toys “R” Us stores by adding more featured areas for top brands such as Mattel’s American Girl dolls.

   

   In the toy business, the incentive is particularly powerful. Last year, Toys “R” Us accounted for 11 percent of sales at Mattel and 9 percent at Hasbro -- the second most at both companies after Wal-Mart.

Meanwhile, many have speculated this week over how/why TOY bonds traded off 75 points on the company's filing?  How could they be so wrong?  While the timing of the filing was probably somewhat of a surprise, we can't help but wonder whether this simplistic org structure might have contributed in some small way?

Quote:Although it should be dead, the company in Bureaucracy is kept alive by artificial life support. The company was born the first time in Infancy, it was reborn in Adolescence, and its third "birth" is in Bureaucracy when it gets an artificial continuance on its life. Death occurs when no one remains committed to keeping the organization alive. If there is no business or government commitment to supporting a company in Recrimination, death can occur instead of bureaucratization.

In the Bureaucratic stage, a company is largely incapable of generating sufficient resources to sustain itself. It justifies its existence by the simple fact that the organization serves a purpose that is of interest to another political and business entity willing to support it. The Bureaucratic organization:

• Has many systems and rules and runs on ritual, not reason.
  
• Has leaders who feel little sense of control.
  
• Is internally disassociated.
  
• Creates obstacles to reduce disruptions from its external environment.
  
• Forces its customers to develop elaborate approaches to bypass roadblocks.
  

Quote:This is a very sad day for Carillion, for our colleagues, suppliers and customers that we have been proud to serve over many years. ... In recent days however we have been unable to secure the funding to support our business plan and it is therefore with the deepest regret that we have arrived at this decision. We understand that HM Government will be providing the necessary funding required by the Official Receiver to maintain the public services carried on by Carillion staff, subcontractors and suppliers.[39]

Quote:iHeartMedia, the struggling company that owns hundreds of radio stations and distributes the talk programs of Sean Hannity, Rush Limbaugh and Glenn Beck, took another step toward bankruptcy by formally notifying its bondholders that it would invoke a 30-day "grace period" clause to avoid paying a $106 million interest payment that was due on Thursday.

In announcing the delay, iHeart insisted that it had the cash but needed more time to complete a reorganization that it said would "proactively and comprehensively address iHeart's capital structure."

The move spooked financial analysts. S&P Global downgraded iHeart's stock to its lowest rating and warned investors that the radio giant was likely to default on its debts. Several analysts have begun speculating that iHeart will file for bankruptcy protection during the grace period.

iHeart, which was formerly known as Clear Channel Communications, suffered another setback in late December when its billboard advertising division, a separate publicly traded company, was sued for extending more than $1 billion in cut-rate loans to iHeart, which were supposed to be paid in full by Dec. 15.

Instead of paying its debt, iHeart, which owns about 90 percent of Clear Channel Outdoor's shares, forced its subsidiary to postpone the due date to May 15 of next year.

In a filing in the Delaware Court of Chancery, a Massachusetts county pension fund alleged that iHeart has been utilizing Clear Channel's steady revenue stream as the primary means of financing itself because iHeart is unable to attract investment. The lawsuit was first reported by the Courthouse News Service.

(01-15-2017, 02:52 AM)pbrower2a Wrote: As the Obama years come to a close I notice far fewer business failures than under Dubya -- even before the economic meltdown of 2007-2009.  The best known of American circuses closes after nearly a century and a half the revenues can no longer keep pace with costs. The demise came apparently with the great cost of keeping the one land animal that may be smarter than humans... those were the top animal stars. But that reflects a cultural trend long in the making. Kenneth Feld rescued the failing circus business

The highest-profile business failures under President Obama were the questionable vocational schools more adept at getting students to sign  notes that the federal government would guarantee the 'educational institution' which ordinarily  prepared the student for nothing. The Obama Administration cut off the loans, so students get stuck with having to go to legitimate schools  that really teach something or having to vocational schools of modest cost and promise.

Count on this: the Trump Administration want those scam schools back in business.

I expect this thread to get very busy in the next four years. Easy money for shysters is the Trump way.

(03-11-2018, 12:19 AM)pbrower2a Wrote: A high-profiler retailer dies.




Toys R Us is preparing to close all its stores in a total liquidation, according to multiple reports, with the iconic retailer having spent the past several months attempting to find a path to survival through a Chapter 11 bankruptcy proceeding.

Bloomberg and the Wall Street Journal cited multiple unnamed sources who blamed the development on weak holiday sales that in turn ratcheted up pressure from lenders owed $5 billion. A formal announcement could come as soon as Monday, with the company still holding out hope for a midnight rescue offer.

A Toys R Us closure would have immediate ramifications for workers at the stores, which double as outlets for its Babies R Us brand — in regulatory disclosures for previous store closings nationally, Toys R Us has listed between 50 and 80 workers in each location.

But the company’s vendors who extended merchandise or credit on the promise of payment stand to lose, as well, including Lego, which has its U.S. headquarters in Enfield. Other Toys R Us and Babies R Us suppliers with local ties include Wilton-based Melissa & Doug; Compass Diversified Holdings in Westport, which owns the Ergobaby line of infant carriers; Jakks Pacific, which sells action figures under license with Stamford-based WWE; and Newell Brands, which has a corporate office in Norwalk and its umbrella of brands including Graco and Baby Jogger.

“It’s really incumbent upon (companies) like us to make sure that, as those stores come out, that we’re actively marketing to the consumer and trying to drive her to an alternative location where she can find our products in the price tier that she’s shopping in,” said Michael Polk, CEO of Newell Brands, speaking to investment analysts in mid-February. “That’s a little bit of the ‘inside baseball’ type of details that are going on in the baby business right now.”
Also exposed in any liquidation are landlords, with Toys R Us having pressed for better rent terms the past several months.

Wayne, N.J.-based Toys R Us was already in the process of closing two Connecticut stores in Newington and North Haven, while intending to push ahead with southwestern Connecticut locations in Danbury, Norwalk and Milford; as well as in Waterbury and Manchester after reversing prior plans to close the two.

https://www.thehour.com/business/article/WSJ-Game-over-for-Toys-R-Us-12740742.php

(03-11-2018, 01:12 PM)beechnut79 Wrote:

(01-15-2017, 02:52 AM)pbrower2a Wrote: As the Obama years come to a close I notice far fewer business failures than under Dubya -- even before the economic meltdown of 2007-2009.  The best known of American circuses closes after nearly a century and a half because the revenues can no longer keep pace with costs. The demise came apparently with the great cost of keeping the one land animal that may be smarter than humans... those were the top animal stars. But that reflects a cultural trend long in the making. Kenneth Feld rescued the failing circus business

The highest-profile business failures under President Obama were the questionable vocational schools more adept at getting students to sign  notes that the federal government would guarantee the 'educational institution' which ordinarily  prepared the student for nothing. The Obama Administration cut off the loans, so students get stuck with having to go to legitimate schools  that really teach something or having to vocational schools of modest cost and promise.

Count on this: the Trump Administration want those scam schools back in business.

I expect this thread to get very busy in the next four years. Easy money for shysters is the Trump way.

Your remark concerning the questionable business schools brings back memories of an earlier scandal. In the late 1970s a Chicago newspaper did an expose called "The Dance Hustle" concerning so-called dance studios that really didn't know how to teach but sure did know how to swindle. They especially enjoyed preying on elderly widows whom they thought were very lonely. I'm sure at least some of them were, but that's beside the point. In fact I worked in a business for a widow at that time and she told me that she got said calls from one of these schools who could take anyone who didn't know a waltz from a samba and make him/her a teacher. Their main "job" was to convince the students that they needed more and more lessons and bribed them into signing up. I believe they were mostly shut down shortly afterwards.

(03-11-2018, 01:20 PM)beechnut79 Wrote: There are many other retailers who at one time were household names which are now, if still operating, on life support.  These include Sears, J C Penney, Radio Shack just to name three. K-Mart, once considered to be on the cutting edge of retail, is now on the verge of extinction. In addition, we have also heard some negatives concerning the restaurant industry. However, I personally believe this is a bit premature as most seem to be surviving OK. One thing that most have now done to compensate for sagging in-store sales is turning to delivery. Rather than hiring their own drivers they are partnering with one or more of the big three third-party delivery services: GrubHub, DoorDash and Uber Eats.

(02-04-2018, 02:52 PM)pbrower2a Wrote: I am satisfied that there will be some new conservatism among Millennial adults inn the 2030s, but not of the Limbaugh-Hannity variety that insults anyone capable of rational thought. iHeart media will probably be defunct long before then.

(05-02-2018, 08:11 PM)pbrower2a Wrote: Cambridge Analytica is winding down, more for legal reasons than due to any economic failure.

Watch for a new organization with similar personnel, financial backers, ideology, clientele, and MO. The numbers racket or bookmaking outfit can always reorganize quickly as it has to close due to 'the heat'.

Quote:Spain on Friday turned over notorious Russian computer hacker Peter Yuryevich Levashov to FBI cyber detectives in New Haven, who have accused him of developing the Kelihos network of hundreds of thousands of infected computers and using it to stuff inboxes with spam, steal secret financial data and spew malicious programming around the world.

The Justice Department calls Levashov, who also is known on the Internet as Peter Severa and Peter of the North, “one of the world’s most notorious criminal spammers.” Russian media has tied him to efforts to influence U.S. elections, but there has been no confirmation of that, and he is not charged with election meddling in the terse federal indictment returned against him in Connecticut in April.

Levashov, 36, was arrested by Spanish authorities in April while vacationing with his family in Barcelona. Spanish authorities put him on a plane to the U.S. and turned him over to the FBI Friday morning. He landed in New York Friday afternoon.

The indictment and arrest are the result of intense efforts by FBI cyber crime squads in New Haven and Anchorage, Alaska. Federal authorities in Alaska shut down Levashov’s Kelihos botnet and are pursing him civilly. The U.S. Attorney’s office in New Haven, which recently created a multi-agency computer crime task force, is bringing the criminal prosecution.

Quote:SEATTLE — Federal officials say three Ukrainians involved in a prolific cybercrime organization have been arrested. They are linked to hacking more than 100 companies in the U.S. and around the world, which caused losses in the tens of millions of dollars.

U.S. Attorney Annette Hayes said at a news conference Wednesday that one man was arrested in Seattle and the other two were taken into custody in Poland and Spain. Their federal indictments were unsealed Wednesday.

The indictments name the defendants as Fedir Hladyr, Dmytro Fedorov and Andrii Kolpakov.

Hayes says the group, called FIN7, used malware tools to reach into more than 3,600 businesses across the country that resulted in the loss of over 15 million credit and debit cards.

Hayes says some of the companies affected included hotels bearing the name of President Trump, Saks Fifth Avenue, Lord & Taylor, Whole Foods, Chipotle, Arby's, Red Robin and Jason's Deli.

FBI Special Agent Jay Tabb says the case was one of the largest it has handled, in terms of loss, number of victims and the size of the criminal organization.