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 threadCrozekielSep 29, 2025
The fact that they can buy a company by going into debt and immediately transfer the debt to the company is fucking insane. Maybe we need to figure out how we as individuals can do that and just fucking crash the lending industry entirely? Can I make my house buy itself for me and then “whoopsie, the house can’t pay the bills, guess it will file for bankruptcy and hand me a big ol’ stack of cash”.
Show threadgroetSep 29, 2025

That’s how landlords work.

Take loan, buy houses, house has to pay back loan via rent, rent is paid for by renter.

Landlord gets house for free, everything paid by renter.

Show threadSupahRevs
In this scenartio, the Landlord also owns the maintenance company, so the renter pays the wages of the maintenance advisor and maintenance costs.
Sep 29, 2025 at 11:21pmWeb
Show threaditztalalSep 30, 2025

As usual, renting is one of the biggest scams society has fallen for.

We only accept it as normal because so many people around us are doing it.