The Study of Toys R Us’ LBO Failure
These authors contributed equally
- DOI
- 10.2991/aebmr.k.220405.235How to use a DOI?
- Keywords
- Toy; Toys “R” Us; LBO; Declared Bankruptcy
- Abstract
Toys “R” Us used to be one of the biggest international juvenile production firms. However, it continually lost its dominant role in the juvenile market and finally declared bankruptcy in 2018. Through studying Toys “R” Us’ financial statement and navigating the strategies it used for improving selling in recent years, the research analyzes several possible reasons for Toys ‘‘R” Us’ failure of bankruptcy and also states how the $6.6 billion LBO operated in 2005 should be one of the important decisions among these factors. By concluding previous improper strategy usage, the research also gives some advice for strategies to improve product selling for the firm’s following return next year 2022. For KKR, Bain, and Vornado, it is good to make sure that managers of the firm have a good new development plan based on the reliable prediction for the toy market’s future. In this new plan, the firm may improve in-store experience and open shops in department stores. But in this research, the brand’s future is not clear yet, and can not surely be successful by the suggestions given in this research, due to the unwise decision of LBO made before.
- Copyright
- © 2022 The Authors. Published by Atlantis Press International B.V.
- Open Access
- This is an open access article distributed under the CC BY-NC 4.0 license.
Cite this article
TY - CONF AU - Shenzhan Li AU - Xinran Liu AU - William W Tan PY - 2022 DA - 2022/04/29 TI - The Study of Toys R Us’ LBO Failure BT - Proceedings of the 2022 7th International Conference on Social Sciences and Economic Development (ICSSED 2022) PB - Atlantis Press SP - 1412 EP - 1417 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.220405.235 DO - 10.2991/aebmr.k.220405.235 ID - Li2022 ER -