Toys R Us
About Toys R Us
Toys R Us filed for Chapter 11 bankruptcy on September 19, 2017, with 6.6 billion in debt. The company had been acquired in a 6.6 billion leveraged buyout by Bain Capital, KKR, and Vornado Realty Trust in 2005. The LBO left Toys R Us with unsustainable interest payments of approximately 400 million annually. The company could not invest in e commerce to compete with Amazon. Revenue fell from 13.9 billion in 2006 to 11.5 billion in 2017. Toys R Us liquidated all US stores in 2018, eliminating 33,000 jobs. The brand was revived in 2019 by Tru Kids Inc, which opened small format stores. The Toys R Us bankruptcy became a symbol of the damage caused by leveraged buyouts.
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