How vulture capitalists ate Toys 'R' Us
TOY shares had fallen from $40 to the low teens by 2004. By announcing a sale of the toy business, the stock rebounded and ultimately the sale to private equity closed at $26.75 per share. That Board knew they had a declining asset on their hands and sold out, at a large premium, rather than watching their equity slowly decline over the next decade.<p>Anyone who despises private equity should be celebrating this story, in this case, KKR&#x2F;Bain&#x2F;Vornado were the suckers in the deal, they bought the rotten apple and suffered massive losses because of it.<p><a href="https:&#x2F;&#x2F;www.nytimes.com&#x2F;2004&#x2F;08&#x2F;12&#x2F;business&#x2F;toys-r-us-says-it-may-leave-the-toy-business.html" rel="nofollow">https:&#x2F;&#x2F;www.nytimes.com&#x2F;2004&#x2F;08&#x2F;12&#x2F;business&#x2F;toys-r-us-says-i...</a>
<a href="https:&#x2F;&#x2F;www.nytimes.com&#x2F;2005&#x2F;03&#x2F;18&#x2F;business&#x2F;company-news-toys-r-us-accepts-66-billion-buyout.html" rel="nofollow">https:&#x2F;&#x2F;www.nytimes.com&#x2F;2005&#x2F;03&#x2F;18&#x2F;business&#x2F;company-news-toy...</a>