Jun 6, 2018

Toys "R" Us could have been saved

Dan Primack, author of Pro Rata

Illustration: Sarah Grillo / Axios

We now have even more reason to blame senior secured lenders to Toys "R" Us for the retailer's epic shutdown, with Bloomberg reporting that buyout firm Sycamore Partners held advanced talks to buy the company and keep half of its U.S. stores in business:

"The retailer’s senior creditors calculated they would see a better return if the company were liquidated and its assets sold off."

Bottom line: This still doesn't excuse the many mistakes made by private equity firms Bain Capital and KKR . But thousands of jobs could have been saved if not for "B4 lender" intransigence.

It's something we've discussed before, and it's only reinforced by the Sycamore revelation.

  • Final inventory, per Bloomberg: "Almost every company asset—cash flows, property, inventory, equity in the international operations—was pledged to a lender, sometimes twice. Toys "R” Us had nothing left to promise."

Flashbacks: The Toys "R" Us blame game, and why it wasn't a total loss for Bain and KKR.

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Biden formally secures Democratic presidential nomination

Joe Biden speaks at Delaware State University's student cente on June 5. Photo: Jim Watson/AFP via Getty Images

Former Vice President Joe Biden became the formal Democratic presidential nominee on Friday evening, per AP.

The big picture: Biden has been the presumptive frontrunner to take on President Trump since Sen. Bernie Sanders suspended his campaign in early April.

Updated 4 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 9 p.m. ET: 6,724.516 — Total deaths: 394,018 — Total recoveries — 2,996,832Map.
  2. U.S.: Total confirmed cases as of 9 p.m. ET: 1,894,753 — Total deaths: 109,042 — Total recoveries: 491,706 — Total tested: 19,231,444Map.
  3. Public health: WHCA president says White House violated social-distancing guidelines to make reporters "a prop" — Jailing practices contribute to spread.
  4. Sports: How coronavirus could reshuffle the sports calendar.
  5. Jobs: Better-than-expected jobs report boosts stock market.
  6. Media: The Athletic lays off 8% of staff, implements company-wide pay cut.

Scoop: German foreign minister to travel to Israel with warning on annexation

Heiko Maas. Photo: Michael Kappeler/picture alliance via Getty Images

German Foreign Minister Heiko Maas is expected to travel to Israel next week to warn that there will be consequences if Israeli leaders move forward with plans to annex parts of the West Bank, Israeli officials and European diplomats tell me.

Why it matters: Israeli and European officials agree that if Israel goes ahead with unilateral annexation, the EU will respond with sanctions.