Toys 'R' Us reportedly being sold

wkyc.com ^ | March 17, 2005 | AP

[Nachum]

NEW YORK (AP) – Toys ‘R’ Us is reportedly being sold.

The Wall Street Journal and New York Times today report the retail chain is being bought up by a consortium of two private-equity firms and a real estate developer for more than $5.5 billion.

Toys ‘R’ Us is the nation’s second-biggest toy retailer.

An official announcement is expected today.

Last night’s deal ends a 7-month-long auction that had been expected to end with the sale of only the company’s toy division. The New Jersey-based firm reportedly wanted to hang on to its more lucrative Babies ‘R’ Us stores, but the papers say the divisions were two closely associated to make a split feasible.

Toys ‘R’ Us has nearly 1,300 stores in the U.S. and abroad, but has been hurt by price cutting from such discount chains as Wal-Mart, the nation’s biggest toy seller.

[Nachum]

Drat. I liked them too.

[Goodgirlinred]

I hope they don't lay off Geoffrey the giraffe. I really like him.

[cripplecreek]

All your Toys R Us belong to us.

[4mycountry]

lol

[Young Werther]

..speculation abounds that the new enterprise will be named:

WE BE TOYS!

[SweetPilotofCanuckistan]

Wow...if they go, Wal-Mart's practically the only place to buy toys.

[CaptRon]

This is a done deal. It was announced to the employees this morning. I have a friend who works there.

[free_european]

One of the buyers was KKR - the firm that bought Nabisco and was immortalized in "Barbarians at the Gate"

[Cyclone59]

LOL!

I wondered if they were even profitable - I went in there before Christmas and thought the place looked ramshakle at best and zero customer service to boot. Just my two cents.

[Young Werther]

I once read about a Pennsylvanian who bought an insurance policy to be paid to the state of Pennsylvania in 500 years. At the compound interest rate available at that time, Pennsylvania would, in fact, own the world.

After just 40 odd years the Walton clan is alot closer to owning the world. Sad that Sam didn't want to erase customer service from the retail experience but when you base your business on price sensitivity then.....

Stanley Marcus spoke at my MBA graduating event. For years he wrote about the importance of customer service but it's gone the way of the dodo bird!

[Eric in the Ozarks]

Wal Mart's competitive strategy is working on their suppliers' money. No one else demands this, yet Levi's and others are bashing down doors to get in.
An entire Arkansas population center and airport has been created by Wal Mart.

[11th Commandment]

All- Don't weep too much over Toys R Us. It seems Walmart and Target did to them what they did to the local toy store.

[sixmil]

Is anyone worried about all the corporate buyouts and mergers lately? Historically speaking, isn't that sign of trouble to come, ie the frenzy before the feast?

Someone psych me up here, I am looking at $3 a gallon gas and I just got a quad cab!

[Eric in the Ozarks]

Wal Mart's standard payment terms are 180 days. Not only do you put your stuff on their shelves, but they have the money in the bank drawing several months' return before you get paid.

[bmwcyle]

I always thought it was TOYS'R'ME.