6min chapter

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The Rise and Fall of Toys R Us

Rocketship.fm

CHAPTER

Toys R Us - The Big Deal

Toys R Us signed on to an expensive partnership with Amazon in 2000. The deal ended badly and the legal costs alone caused a lot of financial pain for Toys R Us. By 2017, it was worried it would not be able to make its debt payments. It hired restructuring advisors who began to craft plans for prepackaged bankruptcy. But in September, CNBC cut wind of the effort. Toymakers were stunned. Within a week of the article's publication, nearly 40% of its vendors refused to ship product without cash on delivery. That's right. Toys R Us would need to liquidate, and it would shudder its roughly 800 stores across the US.

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