How To NOT Succeed In Business

Hi there! Welcome to the I’m So Glad My Suffering Amuses You Business Report, brought to you by Mattresses.

 

I’m Dave-El and I wanted to touch base on a couple of recent developments in the world of business.

 

Toys "R" Us is going out of business in the U.S. which involves shutting down 735 stores which will put about 33,000 people out of work which is a serious bummer. 

 

Toys "R" Us declared bankruptcy in September last year but was unable to convince creditors to refinance its more than $5 billion in debt. 

 

This dire end for Toys "R" Us did not happen overnight. The chain was hobbled by debt stemming from a 2005 leveraged buyout, a deal placed it at disadvantage against Amazon, Walmart and Target which have really dominated the market for toys and games over the last decade. 

 

I know from personal experience that I have not been in a Toys "R" Us in years. When I did go there, it was often against my will when Andrea said it was time to go shopping for our daughter’s birthday and Christmas. In recent years, we have made toys and game purchases through Amazon, Walmart and Target.  

 

My issues with Toys "R" Us mostly stemmed from my own distastes for overstimulating environments with too much stuff, too much light and noise. If Toys "R" Us was competitive when it came to prices  I would’ve been more tolerant of the excess but I personally never saw a significant savings in buying toys from Toys "R" Us as opposed to purchasing stuff from Amazon, Walmart and Target. 

 

Nonetheless, I am still sad to see Toys "R" Us heading to extinction. It was always fun to see what could be found in the Toys "R" Us overstuff sales catalog for Christmas. I will even miss the Toys "R" Us commercial jingle.

 

And there’s that whole  <insert word here> "R" Us thing it was fun to name businesses after.  

 

Lookheed-Martin becomes Airplanes "R" Us.

Whole Foods can be Overpriced Food "R" Us.

Oscar Meyers would be Luncheon Meat "R" Us.

Smith & Wesson could be Guns "R" Us.

 

You get the gist.  

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I was interested to hear that iHeartMedia filed for bankruptcy.

 

Talking in less money than the debt is going up, iHeartMedia reached an agreement to restructure more than $10 billion in debt.  

 

The company has struggled with falling revenue in recent years, as it competed with streaming rivals like Spotify and Pandora.

 

Also contributing to its woes is iHeartMedia’s mission to suck the soul and joy out of radio. Basically, an iHeartRadio station in Massachusetts will sound pretty much like an iHeartRadio station in Alabama which will sound like  an iHeartRadio station in Nebraska which sounds like every iHeartRadio station everywhere.

 

Radio works best when it can relate its local or regional audience. On iHeartRadio stations, play lists are homogenous, on air talent is irrelevant. There is little incentive to listen to radio instead of a music streaming service that sends you music designed specifically for you.

 

When I was younger and imagined I might have a career in radio, there were opportunities to establish a point of view, a personality whether it was the afternoon drive guy, the night time DJ or the overnight graveyard shift. Now, the only timeframe that allows anything resembling a distinctive on air identity is morning drive and even there, unique shows compete with syndicated packages broadcast over different stations. Since there is little to draw ears to traditional radio and  iHeartMedia is determined to erase what’s left, it’s no wonder iHeartMediais struggling. It is a struggle that it has helped to bring upon itself. 

This has been the I’m So Glad My Suffering Amuses You Business Report, brought to you by Chicken.