The Real Reason Toys "R" Us Closed....What happened?

If you think Amazon killed Toys "R" Us, you have been told the wrong story. While e-commerce played a role, the weapon that actually killed Geoffrey the Giraffe was a specific, aggressive type of financial engineering known as a Leveraged Buyout.

In this business deep dive, we perform the autopsy of a retail empire. We analyze how a company that dominated the global market ended up with a balance sheet so toxic it literally couldn't afford to keep the lights on. This isn't just a story about changing consumer habits; it is the story of how a private equity play stripped a retail icon of its safety net.

In this video, we cover:

The Category Killer: How founder Charles Lazarus built a monopoly that controlled 25% of the global toy market.

The $6.6 Billion Deal: The 2005 Leveraged Buyout (LBO) by KKR, Bain Capital, and Vornado that changed everything.

The Debt Trap: How the company was forced to pay $400 million in interest every year, suffocating its ability to compete.

The Amazon Paradox: Why Toys "R" Us ultimately became a "showroom" for Amazon and Walmart.

The Vendor Squeeze: The critical moment Mattel and Hasbro stopped extending credit, sealing the fate of the 2017 holiday season.

The Human Toll: The scandal of executive bonuses versus zero severance for 30,000 employees.

Is the current "shop-in-shop" version inside Macy's a real comeback, or just a zombie brand extracting value from nostalgia?.

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