It depends, the PE firms that bought Toys R Us did what is considered a hostile move in an leveraged buyout (LBO) which is to saddle Toys R Us with lots of debt

It depends, the PE firms that bought Toys R Us did what is considered a hostile move in an leveraged buyout (LBO) which is to saddle Toys R Us with lots of debt (aka they raised debt financing to buy the company) so it had to do everything it could to pay the debt and also generate profits for the PE firms and probably not enough to focus on anything else innovation or operation-wise. Its been noted that LBOs have lead to the demise of several famous companies as noted by Investopedia and LBOs has since gained notoriety. See: https://www.barrons.com/articles/private-equity-firms-provide-20-million-in-assistance-for-former-toys-r-us-employees-1542737621 https://www.barrons.com/articles/private-equity-firms-provid... https://www.latimes.com/business/la-fi-toys-r-us-leveraged-buyout-20180316-story.html https://www.latimes.com/business/la-fi-toys-r-us-leveraged-b... https://www.theatlantic.com/magazine/archive/2018/07/toys-r-us-bankruptcy-private-equity/561758/ https://www.theatlantic.com/magazine/archive/2018/07/toys-r-... https://www.investopedia.com/terms/l/leveragedbuyout.asp#:~:text=A%20leveraged%20buyout%20(LBO)%20is,assets%20of%20the%20acquiring%20company https://www.investopedia.com/terms/l/leveragedbuyout.asp#:~:....