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Toys “R” Us: What went wrong? (Product # 9B18M118)

Lookup NU author(s): Dr Saurabh BhattacharyaORCiD


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In early 2018, Toys “R” Us, an iconic toy retailer, filed for liquidation due to intense competition, heavy debt, poor store merchandise, and a non-user-friendly website. Some experts believed that if Toys “R” Us had filed for bankruptcy after the holiday season, its turnaround efforts would have been more successful. However, a toy maker and founder of MGA Entertainment made a bid to purchase Toys “R” Us, but his offer was denied on the grounds of the value being less than the threshold liquidation value. In April 2018, as he continued in his efforts to buy Toys “R” Us and turn it around, industry experts worried about the future of the toy industry. Was the toy industry likely to suffer due to the exit of such an iconic brand? How would the changing consumer preferences for online games affect the future of toy makers and retailers? Could the current chief executive officer of Toys “R” Us have saved the company and if so, where should he have focused his turnaround efforts?

Publication metadata

Author(s): Agnihotri A, Bhattacharya S

Publication type: Online Publication

Publication status: Published

Series Title: Ivey Publishing

Year: 2018

Description: Business Case Study

Acceptance date: 20/06/2018

Publisher: Ivey Publishing