Toys 'R' Us bought for $6 Billion

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Three Firms Are Said to Buy Toys 'R' Us for $6 Billion (New York Times)

The prospects for toy retailing are gloomy. Pummeled by competition from Wal-Mart, the few toy stores left have been struggling. In 1993, Wal-Mart had only 11 percent of the nation's toy business, while Toys "R" Us had 21 percent, according to Sean McGowan, a retail analyst who covers toys for Harris Nesbitt. Last year, Wal-Mart's share was 25 percent, and Toys "R" Us had shrunk to 17 percent...

As for toys, "Wal-Mart so dominated the space they didn't have a chance," said William M. Smith, a managing partner at Global Reach Capital, a private equity firm in New York City.

When it came down to the wire, Kohlberg Kravis, Bain and Vornado were competing against Cerberus. "Both teams have real estate arms who put in an enormous amount of work on what the leases are worth," Mr. Smith said.

Toys "R" Us still holds the exclusive rights for a large variety of toys, Mr. Smith said, adding that the industry over all "doesn't have the rosiest long-term picture."

To a certain extent, Wal-Mart beat Toys "R" Us at its own game: negotiating through volume. But it was not just Wal-Mart, Mr. McGowan said.

Well at least it is still alive.

And Toys "R" Us usually carries a lot of stuff that Whore-Mart won't even touch.

I just have going to Whore-Mart. The stores are filthy and dirty and the toy section is always a total dump.

Even a new Whore-Mart will become a dump within 3-4 months and it pisses me off that they've become the #1 crack dealer.


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This page contains a single entry by Nala published on March 17, 2005 1:35 PM.

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