Is Toys R Us Private Equity Owned?

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🟡 FORMERLY PE OWNED

Toys R Us

Includes ToysRUs, Toys"R"Us

toys · Wayne, NJ

PE FirmBain Capital, KKR, Vornado →

Year Acquired

2005

“They put $5 billion in debt on a toy store, collected $470 million in fees, then liquidated it.”

What Happened

•Bain, KKR, and Vornado bought Toys R Us in 2005 using 80% borrowed money — $5B+ in debt on a $6.6B deal, requiring $400M/year in interest
•The PE firms collected $470M in fees and interest while cash reserves shrank from $2.2B to $301M
•Spent $400M+ annually just servicing debt — money that could have funded e-commerce, store renovations, or competing with Amazon
•The PE firms walked away with $470M in profits while the company they owned was dying; when Congress demanded accountability, they offered $600 per displaced worker

The Damage Done

▸All 735 U.S. stores liquidated in 2018 — an entire retail category for kids, erased
▸33,000 workers laid off with zero severance, despite longstanding company policy to provide it
▸Store shelves were left intentionally bare in final years as PE owners stopped investing in inventory
▸Parents lost the only dedicated toy store in most American cities — the remaining toy market is now dominated by Amazon and Walmart aisles

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Frequently Asked Questions

Is Toys R Us owned by private equity?

Not anymore. Toys R Us was formerly owned by Bain Capital, KKR, Vornado starting in 2005, but the firm has since exited. The effects of PE ownership often linger.

What happened to Toys R Us after the acquisition?

All 735 U.S. stores liquidated in 2018 — an entire retail category for kids, erased 33,000 workers laid off with zero severance, despite longstanding company policy to provide it

Who owns Toys R Us?

Toys R Us is owned by Bain Capital, KKR, Vornado, which acquired it in 2005.