23 Oct Toys R Us Debt Financing – Street Diligence podcast on the decline of Toys R Us
Stephen Hazelton, Founder and CEO of Street Diligence, talks about the decline of Toys R Us in a recent podcast with Value Walk. Stephen believes the bankruptcy resulted from a high debt load coming from the leveraged buyout a few years prior. There were additional issues with Amazon in the industry and Toys R Us was unable to meet the cash flow to pay off their high debt load. Toys R Us was also not able to reinvest capital in their aging stores and this also made them less competitive. Stephen believes Amazon could make additional gains in the toy industry as a result of the issues that Toys R Us is facing. The podcast delves into the debt financing of Toys R Us with the Delaware Inc. Subsidiary of the toy company. Stephen clearly explains the complex situation and how the debt load lead to Toys R Us subsequent bankruptcy. He provides important insight into how confidentiality can lead to the decline of a once thriving company.