Toys'R'Us was the victim of a leveraged buyout in 2005. The business hasn't been doing all that poorly, just not well enough to pay off all the debt. So capex is taking a backseat to debt servicing. It's a slow-motion train wreck.
The same thing just happened to Clear Channel. The bankruptcies aren't likely to kill off the business, but hand ownership over to the debt holders.
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Toys'R'Us was the victim of a leveraged buyout in 2005. The business hasn't been doing all that poorly, just not well enough to pay off all the debt. So capex is taking a backseat to debt servicing. It's a slow-motion train wreck.
The same thing just happened to Clear Channel. The bankruptcies aren't likely to kill off the business, but hand ownership over to the debt holders.