Private equity bosses took $200m out of Toys R Us and crashed the company, lifetime employees got $0 in severance

Kick Back and Relax in the Cheers! Forum. Thoughts on life or want advice or thoughts from other pca members. Or just plain "chill". Originator of da Babe threads.
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FlyingPenguin
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Private equity bosses took $200m out of Toys R Us and crashed the company, lifetime employees got $0 in severance

Post by FlyingPenguin »

"Turns out I’m 'woke.' All along, I thought I was just compassionate, kind, and good at history. "

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Pugsley
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Re: Private equity bosses took $200m out of Toys R Us and crashed the company, lifetime employees got $0 in severance

Post by Pugsley »

So why is this even legal?
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Err
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Re: Private equity bosses took $200m out of Toys R Us and crashed the company, lifetime employees got $0 in severance

Post by Err »

https://www.nakedcapitalism.com/2018/06 ... rance.html

According to a link from the article FP posted, the companies are Bain Capital, KKR, and Vornado. In all seriousness, if was told that my severance was getting taken away because of these companies BS, I'd set fire to their offices.

I did a quick search on Bain Capital. Care to Guess their founders? One is Bill Bain. The Other. . .Mick Romney. They are currently managing 75 Billion dollars in assets. KKR has over 148 billion under management and Vornado comes in last with only 2 billion under management. However Vornado's stock prince is at $71 per share right now. It actually went up today. Amazing, right!?

How is this legal? Ask our leaders, they make the damn rules.
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wvjohn
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Re: Private equity bosses took $200m out of Toys R Us and crashed the company, lifetime employees got $0 in severance

Post by wvjohn »

It's deja vu all over again everytime one of these outfits goes into action with their "leveraged buyouts". Not only does severance pay frequently disappear, but also pensions, health insurance for retirees, etc. Grab whatever profit you can squeeze selling real estate, etc. then dump all the liabilities on taxpayers and the public. There are lots of stories about this in the alt-finance press like NC. The really sad things is that many of these companies are marginal - they are getting by with small amounts of debt and providing jobs and services. The these looters come in , and a company that was getting by with $50M in debt goes under with $5B in debt to service. Imagine that.
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