Mike Damone

September 6th, 2017 at 5:07 PM ^

do you see this line on the chart, heading steadily downward?  That is bad.  Go do the quarterly conference call w investors, I will be right behind you with a press release..."

 

stephenrjking

September 6th, 2017 at 5:24 PM ^

There's a fair amount of context provided in this thread concerning the industry headwinds places like Toys R Us face. Obviously, they aren't the only long-time store franchise to be facing trouble--just walk into a K-Mart (if you can find one that's still open) to see that.

But that's the thing. These stores need innovation and differentiation to succeed. Not all brick-and-mortar stores are dying, and even ones that are struggling can find niches to flourish within. They need leadership and innovation and market understanding.

Brandon doesn't have any of these qualities as a CEO; he is an automated business cliche generator. Press a button and he will discuss "brand equity" and "internet revenue growth" and other sophisticated-sounding words recorded at random on hidden microphones concealed in the hallways at Ross, but he can't do anything to actually improve or strengthen what he is in charge of. 

Like the 2013 Michigan offense under his personal supervision Brady Hoke and Al Borges, he just keeps trying the same thing that he thinks is supposed to work because he's seen other people do it. And he keeps trying until people get fired.

turtleboy

September 6th, 2017 at 5:44 PM ^

Can't imagine why they'd go bankrupt. It's not like they're charging 15% more across the board for products you can just buy online. What's that? That's exactly what they're doing? That's been their business model since they were founded? And they haven't adapted? At all? Hmm.

FLwolvfan22

September 6th, 2017 at 6:31 PM ^

designs but you walk in and it's like a jail, bars on the freaking window, all cement entrance, roll up steel door. I thought it was a place for kids toys, or is there something else TrU is selling?

slimj091

September 6th, 2017 at 7:40 PM ^

In this day in age of being able to buy anything on the internet, and having it shipped to your house in a day makes running any brick and mortar store other than Wal-Mart a bad carrer move.

God I just realized that I kind of defended Dave Brandon there. I need to take a few.. dozen showers now.

mgoblue0970

September 6th, 2017 at 8:19 PM ^

Except Brandon was hired exactly for getting Toys R Us to an IPO.  We shouldn't be sensitive to the information age aspect of things because Brandon and the board knew exactly what they were doing... and failed.  In the big boy world of buisness, C-levels are measured on stock performance.  Brandon supposedly had expert exeprience in that area.  TRU sought him out specifically for that reason.  It's not defensible at all.

jblaze

September 6th, 2017 at 9:20 PM ^

Not evern remotely defending Brandon, but declaring Bankruptcu is a standard business move that does not indicate anything about the leadership of a company. I mean look at the POTUS. Brandon could be that someday.

BlueinLansing

September 6th, 2017 at 9:35 PM ^

becoming a CEO of a brick and morter retailer, a struggling one at that.  I can't blame him for this possible failure.  I'm sure he was brought in because he sold them on the idea he's a captain of turnarounds.  There are numerous CEO's out there that have sold huge retailers they're the ones that can stop the inevitable tide thats washing over them.  Dave's just another, he'll make his money and probably be replaced soon move on to the next big adventure.  Whatever.

 

don't care alot he's not the AD at Michigan and has given more than enough evidence about the kind of a hole he is.

BlueinLansing

September 6th, 2017 at 9:42 PM ^

the primary reason Toys R Us is in trouble debt wise is that its wall street owners did what all wall street owners have done, buy the company, take it private, load it up with massive debt, hope to cash out in the public market.  Toys R Us was ready to go public again in 2010 but were pulled off the block by its wall street owners because of market conditions and have struggled ever since.

 

Basically they've fucked the pony here and are in a tough spot because $400 million in debt is due next year and no way to pay it without either a huge debt restructuring or bankruptcy.  Debt restructuring is super tough for retailers right now.    This is all debt acquired before DB became CEO. 

Again he took a risk accepting the job