Why Toys R Us Filed for Bankruptcy

Toys R Us, once the go-to toy retailer, filed for bankruptcy in 2017 mainly due to overwhelming debt from a 2005 leveraged buyout. While competition from online retailers like Amazon and big-box stores like Walmart and Target hurt sales, the massive debt made it impossible to adapt. Declining toy popularity also played a role. The bankruptcy aims to restructure, giving Toys R Us a chance to remain in business if it can manage its debt and improve its competitiveness.

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