So maybe all of the big retail acquisitions over the past few years won't turn out to be real estate plays. Vornado Realty Trust and the private-equity firms that acquired Toys "R" Us in 2005 are taking the chain public in an IPO valued at $820 million.
It is apparently the largest IPO this year and the biggest one in retail since Dollar General filed its $824-million offering in November.
So how will Toys do? Fitch Ratings had some good things to say about the offering, giving the measure a positive rating: "The current ratings reflect Toys' successful operating strategy which resulted in improved operating results and credit metrics in fiscal 2009 despite the challenging operating environment."
Toys has also been aggressive in its superstore-format approach in attempts to compete with the large discounters like Walmart. To us, the biggest question is: Does the consumer really want a toys-only superstore or are shoppers gravitating more towards the large discounters when shopping for their children?
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