The gift that keeps on giving

  • Euphorazine@lemmy.world
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    11 months ago

    Amazon does probably do this, but burning down a retail store wouldn’t hurt their competition.

    Tinfoil hat time, the equity firm that bought toys r us, bain capital, somehow got people to agree that they could use the equity of toys r us as collateral, then heavily leveraged themselves to buy out a bunch of companies that competed with toys r us and therefore Amazon, and after buying out all these companies, collapsed in on themselves dragging all of them down with it.

    Amazon already handled a lot of toys r us’s logistics at the time, so it was a nice boon for them to already have the infrastructure in place to support that market when suddenly toys r us starts making highly risky leveraging decisions.