> Toys "R" Us went bankrupt because they thought they were a toy-selling company, instead of a child entertainment company. These companies fail to innovate. N

> Toys "R" Us went bankrupt because they thought they were a toy-selling company, instead of a child entertainment company. These companies fail to innovate. Not exactly [1] "Toys "R" Us' debt problems date back to well before Amazon (AMZN) was a major threat. Its debt was downgraded to junk bond status in January of 2005, at a time when Amazon's sales were just 4% of their current level. [...] A year later the company was taken private by KKR, Bain Capital and real estate firm Vornado. The $6.6 billion purchase left it with $5.3 billion in debt secured by its assets and it never really recovered. But much of the chain's resources were devoted to paying off that massive debt load rather than staying competitive. When Toys "R" Us filed for bankruptcy in September 2017, it disclosed it had about $5 billion in debt and was spending about $400 million a year just to service that debt." [1] https://money.cnn.com/2018/03/15/news/companies/toys-r-us-closing-blame/index.html https://money.cnn.com/2018/03/15/news/companies/toys-r-us-cl... [edit: formatting]