Retailers are filing for bankruptcy at a staggering rate — and these 19 companies could be the next

Cacs R Us

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It doesn't matter if you like these companies or not, this is a lot of job loss. Our government is so full of dinosaurs we have nothing in place to deal with the rapidly coming in tide of automation and jobs as we currently know them disappearing into the ether.
 

dora_da_destroyer

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  • J.Crew Group, Inc. - too early to call on this one, but the basic, boring, slightly preppy look is dying. them and banana don't offer anything "funky" enough to show personality and their basics are similar to styles you can pick up for less or in a department store
  • PetSmart Inc. - this surprises me, seems like pet-related retail would be a safe bet, guess target, walmart, costco might be winning more customers
  • David's Bridal, Inc. - i don't believe this, this is the biggest mass market bridal retailer, what's the deal here?
  • Neiman Marcus Group - fukk em
  • Payless - they been on the list for years
  • Guitar Center - take music out the schools, brehs :to: all you laptop/iphone dj's and rappers/singers also messing the game up :ufdup:
  • Claire's Stores, Inc. - stupid junk jewelry you can buy online, at h&m, old navy, zara, target, etc., peace out
  • Sears Holdings - this store is dead, they need to stop putting them on the list, it's clear that the only reason they still exist/operate is for the real estate play
 

Cacs R Us

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How vulture capitalists ate Toys 'R' Us

In other words, if Bain, KKR, and Vornado had never come along, Toys 'R' Us wouldn't be doing stellar, but it probably could've muddled through. As recently as last year, the company still accounted for 20 percent of all U.S. toy sales.

Instead, the legacy of the leveraged buyout turned this into an existential crisis, and Toys 'R' Us filed for bankruptcy midway through last year. Then, when holiday sales didn't pan out, the company's leadership decided to sell or shutter all its stores. And 33,000 working people could lose their jobs.

Bain, KKR, and Vornado will have to write off their investment, of course. But they did suck around $200 million in fees out of Toys 'R' Us over the course of their ownership.

Basically, the trio took an imperfect-but-functioning company and cannibalized it for cash.

Frustratingly, the story of Toys 'R' Us' debt burden has been a footnote in news coverage, buried under musings on how the company failed to compete with the likes of Amazon. And when the debt is covered, it's often devoid of context: Toys 'R' Us just happened to borrow money, it proved to be a bad decision, and now the retailer is suffering the fate of imprudent borrowers everywhere. Rarely does anyone point out that debt was a deliberate Wall Street strategy.
:martin:
 
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