80. Going-Out-of-Business Sales
Summary
This episode explores the economics of going-out-of-business sales, using the Toys R Us bankruptcy as a case study. Host Zachary Crockett discusses how liquidators like Bradley Snyder of Tiger Group manage these sales to maximize inventory recovery for creditors. The segment covers the psychology of escalating discounts, the "retail chicken" game between shoppers and stores, and the complex supply chain that moves leftover goods to salvage dealers and discount retailers.
Topics discussed
Sponsorships: Principal Life and U.S. Bank
The rise and fall of Toys R Us
Introduction to liquidators and Tiger Group
The retail apocalypse and bankruptcy trends
Financial obligations and the need for cash recovery
Assessing inventory and store conditions
Planning the sale and marketing strategies
Psychology of discounts and scarcity
Sponsorships: Wix, Mint Mobile, and Walmart Business
Markup structures and discount ranges by category
Consumer behavior and brand protection (RTV)
Deceptive pricing practices and legal protections
Selling fixtures and the salvage dealer hierarchy
Payment distribution and the return of Toys R Us
Outro, listener story, and final sponsorships
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