If you can read this, either the style sheet didn't load or you have an older browser that doesn't support style sheets. Try clearing your browser cache and refreshing the page.

(Bloomberg)   Smell that? You smell that? Retail meltdown, son. Nothing else in the world smells like that. I love the smell of retail Apocalypse in the morning   ( bloomberg.com) divider line
    More: Scary, high-yield retail borrowings, Leveraged buyout, financial crisis, risky retail debt, department stores, Wal-Mart Stores Inc., third-largest retail bankruptcy, retail pushing investors  
•       •       •

2623 clicks; posted to Business » on 08 Nov 2017 at 11:07 AM (36 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



23 Comments     (+0 »)
 
View Voting Results: Smartest and Funniest
 
2017-11-08 09:57:58 AM  
The root cause is that many of these long-standing chains are overloaded with debt-often from leveraged buyouts led by private equity firms.

FTFA
Who would've ever thunk it?
 
2017-11-08 10:04:30 AM  
I assume we won't be singing 'Let's go to the mall' in the near future.
img.fark.netView Full Size
 
2017-11-08 10:32:49 AM  

Fingerware Error: The root cause is that many of these long-standing chains are overloaded with debt-often from leveraged buyouts led by private equity firms.

FTFA
Who would've ever thunk it?


And then they barely mention it in the rest of the article.  There's probably no way to make this kind of operation illegal, but the banks could be a bit more diligent about what kind of operations they finance.  When Toys R Us starts eliminating debt it won't be Bain that suffers, it will be the banks.  Again.
 
2017-11-08 10:33:47 AM  
Not to worry...there's going to be a lot of coal mining jobs!
 
2017-11-08 10:37:09 AM  

ArkPanda: When Toys R Us starts eliminating debt it won't be Bain that suffers, it will be the banks. Again.


Banks aren't worried. They are too big to fail and taxpayers will bail them out. Be sure to thank the vulture capitalists for the screwing when you pay your taxes.
 
2017-11-08 10:37:48 AM  
This is going to nuke the economy but at least robots will take the food service jobs. So we have that going for us.
 
2017-11-08 10:47:57 AM  
Apparently my region has a 26.8% delinquency rate.

That doesn't surprise me, since with a declining population, the more retail we add in just results in a bigger zero sum game.

I'd like to know the comparative health between the national chains, Mom & Pop operations, and boutique retail.
 
2017-11-08 11:16:49 AM  
So there will be a tax cut
A war, or two
The president will tell us to go shopping

Where have I heard this one before?
 
2017-11-08 11:34:41 AM  
US Treasury yield curves are flattening too - usually a leading indicator of a recession.

For those that are unfamiliar as to why: banks borrow short term, lend long term. Lending rates are usually tied to Treasury yield.

A flatter yield curve means that traditional lending becomes less profitable, and eventually banks reduce lending.
 
2017-11-08 11:34:50 AM  

Fingerware Error: The root cause is that many of these long-standing chains are overloaded with debt-often from leveraged buyouts led by private equity firms.

FTFA
Who would've ever thunk it?


With cost of capital as cheap as it is, I'm surprised this hasn't been more widespread. Cash cow businesses wrung dry and the shell of the corporation left to go bankrupt holding a huge pile of debt. That debt then gets absorbed by a bank, which has insurance provided by another bank, which then gets bailed out by the feds.
 
2017-11-08 11:48:30 AM  

Shaggy_C: Fingerware Error: The root cause is that many of these long-standing chains are overloaded with debt-often from leveraged buyouts led by private equity firms.

FTFA
Who would've ever thunk it?

With cost of capital as cheap as it is, I'm surprised this hasn't been more widespread. Cash cow businesses wrung dry and the shell of the corporation left to go bankrupt holding a huge pile of debt. That debt then gets absorbed by a bank, which has insurance provided by another bank, which then gets bailed out by the feds.


img.fark.netView Full Size
img.fark.netView Full Size
 
2017-11-08 11:49:14 AM  
Replace "psychic" with "retail".

Blue Oyster Cult: Veteran of the Psychic Wars
Youtube jGKNaIXtBZQ
 
2017-11-08 11:50:15 AM  
This is Walmart effect now driven by Amazon.  People don't realize that the 15 cents that Walmart charge less actually helps power the local economy.  Small business is relatively inefficient, that leads to more jobs.  And the profit goes to Wall Street instead of Main Street. It is a tithe off of the local economy and its powered by greed and too much of it kills the marketplace.  Maximum profits for one vendor leaves less money in the system for others to profit from.  Add in oligarchical system abuse of the vendors and local laws and this is a house of cards.  Their own addiction to even more money will destroy the system, but they can't even think of checking their greed.
So when it collapses in two years and the tax rates and revenues are cratered, the next POTUS and congress will have to raise taxes in a recession.
/And those that voted for this will be the most to suffer and the loudest to want it back.
//When FDR was elected in 32, the oligarchs were glad for it.  It could have been an actual socialist or communist.
///2020 they will be saying it again
 
2017-11-08 11:53:13 AM  
Consumer confidence can be as high as it likes but if consumer's wages haven't changed they still aren't buying any more shiat than they did last year.
 
2017-11-08 11:58:49 AM  
FTFA The reason isn't as simple as Amazon.com Inc

Wait... actual analysis?  How did this article end up on fark?
 
2017-11-08 12:08:38 PM  

ArkPanda: And then they barely mention it in the rest of the article.  There's probably no way to make this kind of operation illegal, but the banks could be a bit more diligent about what kind of operations they finance.  When Toys R Us starts eliminating debt it won't be Bain that suffers, it will be the banks.  Again


OMG THE BANKS! WHO WILL THINK OF THE BANKS?!
 
2017-11-08 01:08:26 PM  

debug: Consumer confidence can be as high as it likes but if consumer's wages haven't changed they still aren't buying any more shiat than they did last year.


This right here. I mean, who realistically thinks that the economy is growing or improving?
 
2017-11-08 01:51:07 PM  
Macy's Don't Surf!
 
kab
2017-11-08 02:24:28 PM  

debug: Consumer confidence can be as high as it likes but if consumer's wages haven't changed they still aren't buying any more shiat than they did last year.


But Daddy Trump said the stock market is doing awesome, which means I can buy whatever I want now.
 
2017-11-08 03:24:26 PM  

Fingerware Error: The root cause is that many of these long-standing chains are overloaded with debt-often from leveraged buyouts led by private equity firms.

FTFA
Who would've ever thunk it?


img.fark.netView Full Size
 
2017-11-08 04:14:00 PM  
Greed continues to eat this country alive...
 
2017-11-08 07:09:49 PM  

MBZ321: debug: Consumer confidence can be as high as it likes but if consumer's wages haven't changed they still aren't buying any more shiat than they did last year.

This right here. I mean, who realistically thinks that the economy is growing or improving?


But Trump and Fox News said so! Are you trying to imply it's not doing all that hot?
 
2017-11-08 08:35:36 PM  
This is the future. Low-income people who work at retail jobs will become under/unemployed leading to more and more welfare and also more crime.
 
Displayed 23 of 23 comments

View Voting Results: Smartest and Funniest

This thread is archived, and closed to new comments.

Continue Farking

On Twitter





Top Commented
Javascript is required to view headlines in widget.
  1. Links are submitted by members of the Fark community.

  2. When community members submit a link, they also write a custom headline for the story.

  3. Other Farkers comment on the links. This is the number of comments. Click here to read them.

  4. Click here to submit a link.

Report