Toys "R" Us
Iconic toy retailer destroyed by $6.6B LBO from Bain Capital, KKR, and Vornado. PE firms extracted $464M in fees while loading $5.2B in debt. 33,000 U.S. workers lost jobs when all stores liquidated in 2018.
- FOUNDED
- 1948
- ACQUIRED
- Bain Capital, 2005, $6.6 billion
- IMPACTS
- 3 documented
- WEB
- toysrus.com
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Editorial Record
maintained by DeathbyPE. Every claim links to a public source.Timeline
Toys "R" Us founded
Acquired by Bain Capital for $6.6 billion
Toys "R" Us loaded with $5.2 billion in LBO debt
CriticalDebt LoadingOf the $6.6B acquisition price, only $1.3B was equity from the PE consortium. The remaining $5.2B was loaded as debt onto the company itself, requiring $400M/year in interest payments.
Toys "R" Us bankrupted by PE debt: 30,000+ workers lost jobs
CriticalClosure / BankruptcyKKR, Bain Capital, and Vornado's 2005 leveraged buyout loaded Toys "R" Us with $5.3B in debt. The company couldn't invest in stores or compete with Amazon, leading to liquidation in 2018.
Toys "R" Us liquidated after PE firms extracted $464M in fees
CriticalClosure / BankruptcyBain Capital, KKR, and Vornado's $6.6B leveraged buyout loaded $5.2B in debt. Annual debt service of $400M starved the company of investment capital. 33,000 U.S. workers lost jobs when all 735 stores closed.
How PE Killed Toys "R" Us
Leveraged Buyouts and Financial Distress
How Private Equity Killed Toys R Us
Toys R Us Workers Got Nothing. The PE Owners Got $470 Million.
Before / After
Jobs lost
reported 2018
before 33,000 employees
after 0 (liquidated)
-100%
U.S. stores
reported 2018
before 735 stores
after 0 (liquidated)
-100%
Annual debt service
reported 2005
before $0
after $400M/year
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