3 Companies Not Going Public Anytime Soon
Hot IPO market or not, public trading isn't in the cards
Toys “R” Us
The ubiquitous toy retailer was the subject of an ill-fated private equity deal back in 2005, when KKR (KKR), Bain Capital and Vornado Realty Trust (VNO) bought it out for $6.6 billion.
Even back then, Toys “R” Us was struggling, as it was forced to fight against discounting from increasingly influential players like Walmart (WMT) and Target (TGT), as well as Amazon.com (AMZN).
Toys “R” Us tested various strategies, including pop-up stores, exclusive merchandising and an improved website, but they did little to stop the deterioration of the business.
In 2010, Toys “R” Us did file for an IPO, but it got little interest. In March 2013, Toys “R” Us announced a slip in sales from $5.9 billion to $5.8 billion and a 30% deeper net loss of $239 million. So it was no coincidence, then, that the company also pulled the filing the same day.
Article printed from InvestorPlace Media, http://investorplace.com/ipo-playbook/3-companies-not-going-public-anytime-soon/.
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