While intense price competition from mass retailers Walmart, Amazon, and Target has contributed to the company’s woes, experts place the blame squarely on the shoulders of management. The former leader of the toy industry, Toys R Us filed for Chapter 11 bankruptcy in September after years of slipping sales and mounting debt. bankruptcy court on Thursday that it must liquidate its operations, meaning the likely closure of hundreds of stores. The once-mighty retailer, which has struggled to keep up with changing trends in consumer behavior and childhood play, told a U.S. In the end, nostalgia couldn’t save Toys R Us. In a separate article and podcast, Wharton’s John Zhang talks about why so-called “category killers” like Bed Bath & Beyond are facing extinction in the current retail environment. The most recent fallout is the April 2023 bankruptcy filing of Bed Bath & Beyond, which once dominated the housewares market. Since this article was published in 2018, the COVID-19 pandemic and other critical factors have thrown retailers into a tailspin.
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