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.Anyone who despises private equity should be celebrating this story, in this case, KKR/Bain/Vornado were the suckers in the deal, they bought the rotten apple and suffered massive losses because of it.https://www.nytimes.com/2004/08/12/business/toys-r-us-says-i...
https://www.nytimes.com/2005/03/18/business/company-news-toy...