In this week’s episode, we take a deeper look at the economics behind the recent bankruptcy filing of Toys ‘R’ Us, and discover why, in the short term at least, fans have nothing to worry about.

The majority of the episode will focus on Toys ‘R’ Us’ history, its partnerships, and its success strategies. Next, we will take a look at the circumstances surrounding its bankruptcy filing, and learn about the chapters and mechanisms that a company can take. Finally, we will be looking back at Toys ‘R’ Us in Singapore, to find out why our local chains are isolated from the bankruptcy filing, a big relief indeed for long time fans of the brand.

In this episode, you will learn about:

  • How founder Charles Lazarus built Toys ‘R’ Us
  • The cost strategies that built the Toys ‘R’ Us empire
  • How new competitors killed Toys ‘R’ Us’ price advantage
  • Why the restructuring under ex-CEO John Eyler was so costly
  • The $6.6b USD leverage buyout that saddled Toys ‘R’ Us with debt
  • The bizarre circumstances leading to the bankruptcy filing
  • How Chapter 7 and Chapter 11 differs, and what it means for Toys ‘R’ Us
  • Why Toys ‘R’ Us Singapore is protected from the bankruptcy filing


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