What happened to Toys “R” Us? - FourWeekMBA

Toys “R” Us is an American toy retailer founded in 1948 by Charles Lazarus. The company filed for bankruptcy in 2017 after more than seven decades in operation. Toys “R” Us suffered from mismanagement, choosing not to invest in eCommerce and believing its physical stores would always attract patrons. High debt levels caused the maintenance and customer service levels in these stores to be sub-standard at best. Toys “R” Us entered into a financially successful partnership with as the exclusive seller of toys. However, this partnership caused Toys “R” us to neglect its own eCommerce platform. It also surrendered important insights regarding toy retailing to its biggest competitor.

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