gedaliyahSep 29, 2025

TIL that Toys R Us wasn't killed by competition, but by private equity companies

https://lemmy.world/post/36627195

TIL that Toys R Us wasn't killed by competition, but by private equity companies - Lemmy.World

Basically, the company had to pay for its own buyout when private equity firms KKL, Vornado, and Bain bought the company for $6.6 billion, mostly with loans. Because the company then had to pay off those extreme loans, they were forced to sell off their assets and property, which they leased back from the very private equity firms that now owned them. The same thing happened more recently with Red Lobster and JoAnn Fabrics.

Show threadthermal_shockSep 29, 2025
Yeah, the term “venture capitalist” is very negative in my mind because of how they destroy companies from the inside out to profit themselves. Fuck them.
Show thread4amSep 29, 2025

Does the term “venture capitalist” refer to these types of activities? I thought that was more about funding startups (like in Silly Con Valley) and this was more private equity holders.

Or are they two sides of the same card?

Show threadthermal_shock
I’m not sure honestly, I know venture capitalists buy companies usually with the intention of expanding or helping grow, but lately it seems like they pass around their debt, force them to bankrupt, liquidate and kill it.
Sep 29, 2025 at 5:41pmWeb
Show threadMatthewSep 29, 2025
I think you’re looking for the term vulture capitalism.
Show threadJarixSep 29, 2025
I was looking to see if the term rape and pillage showed up
Show threadඞmirSep 29, 2025
Venture capitalism is about creating a monopoly by operating at a massive loss until you can jack up prices without competition
Show threadF_StateSep 29, 2025
Kinda like how Uber and Lyft put cab companies out of business and then their prices skyrocketed?
Show threadඞmirSep 29, 2025
Exactly like that