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My understanding was that the main thing that killed Toys'R'Us was mismanagement, not online competition.

• smileysteve 7y ago
  Not even mismanagement; They were a private equity purchase, that was then saddled with the debt of their purchase to pay the private equity group. In some ways this is exactly what the Private Equity company is designed to do. https://www.nytimes.com/2018/03/15/business/toys-r-us-bankruptcy.html https://www.nytimes.com/2018/03/15/business/toys-r-us-bankru... also see: Pretty Woman
  • PhasmaFelis 7y ago
    Malicious management, then.
  • bradknowles 7y ago
    It's called a "Leveraged Buyout". Then couple that with liquidating all the valuable assets with all the profits going to the private equity group. Meanwhile, your private equity group is also your landlord, and they charge outrageous property rental prices. Once all value to the property has been extracted and transferred to the private equity group, and the only thing left is liabilities, you then go bankrupt and try to flog off the liabilities to the highest bidder (who is stupid enough to pay money for something that has negative value). That's the history of Bain Capital, Blackrock, and all the other Private Equity Groups.