Both the Toys 'R' Us and KB Toys LBOs were orchestrated by Bain Capital.
In 2005, Bain teamed up with KKR & Co. and Vornado Realty Trust to take over Toys 'R' Us in a $7.5-billion acquisition. The acquisition saddled Toys 'R' Us with so much debt, it couldn't pay it back.
Well, you hire Bain consulting and follow their advice so Bain Capital can buy you in a hostile takeover when you tank. Then they part you out and pocket the profit. Sounds like a win-win for someone.
Bain Capital and Bain consulting are two separate companies but point still remains. When you hiring MBAs who have no idea what the business is and listen to them, you are digging your own hole. None of their bright ideas worked out.
Isn’t Bain also the company that Mattel hired several times to restructure the company and provide direction a few years back?