How Toys R Us Was Killed by Its Own Owners: The Inside Story

Chapters

1. 00:00What Made Toys R Us a Giant?
2. 00:16The $1.3 billion dividend
3. 00:38Owners profited as company sank
4. 00:59Owners Cash Out
5. 01:18Underinvestment
6. 01:34The Numbers Tell the Story
7. 01:51What Happened When Debt Caught Up?
8. 02:07Why Couldn't Bankruptcy Save It?
9. 02:23The Debt Trap
10. 02:39Missed Digital Revolution
11. 02:54Walmart's Advantage
12. 03:08The Real Estate Trap
13. 03:24Suppliers Squeezed
14. 03:38The Failed Turnaround
15. 04:05The Final Blow
16. 04:31Empty Promises
17. 04:45Digital Desert
18. 04:59Price War Lost

About this video

Discover how Toys "R" Us, once the leading toy retailer, was brought down by its own owners. Learn about the devastating impact of a leveraged buyout and the competitive pressures that led to its collapse. Uncover the financial missteps that resulted in the loss of 33,000 jobs and the closure of 735 stores. Chapters: 00:00 What Made Toys R Us a Giant? 00:16 The $1.3 billion dividend 00:39 Owners profited as company sank 01:01 Owners Cash Out 01:20 Underinvestment 01:36 The Numbers Tell the Story 01:53 What Happened When Debt Caught Up? 02:10 Why Couldn't Bankruptcy Save It? 02:27 The Debt Trap 02:43 Missed Digital Revolution 02:59 Walmart's Advantage 03:13 The Real Estate Trap 03:30 Suppliers Squeezed 03:44 The Failed Turnaround 04:11 The Final Blow 04:38 Empty Promises 04:53 Digital Desert 05:07 Price War Lost Sources & further reading: • Toys "R" Us Chapter 11 Bankruptcy Filing — U.S. Bankruptcy Court for the Eastern District of Virginia, Case No. 17-34665, filed September 18, 2017 • Bloomberg - How Toys R Us Became a $5 Billion Debt Bomb — https://www.bloomberg.com/news/articles/2017-09-19/how-toys-r-us-became-a-5-billion-debt-bomb • Reuters - Toys R Us owners paid $1.3 billion dividend — https://www.reuters.com/article/us-toysrus-dividend-idUSTRE68R3ZQ20100928 • Wall Street Journal - The Rise and Fall of Toys R Us — Series of articles from 2017-2018 detailing the company's decline • Forbes - How Private Equity Killed Toys R Us — https://www.forbes.com/sites/greatspeculations/2018/03/16/how-private-equity-killed-toys-r-us/ • SEC Filings of Toys "R" Us, Inc. — Annual reports (10-K) and quarterly reports (10-Q) from 2005 to 2017

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