Toys 'R' Us (2017-2018)
Toys 'R' Us carried more than $5 billion in debt from a 2005 leveraged buyout by KKR, Bain Capital, and Vornado. The debt load left no cash to modernize stores or compete with Amazon and Walmart, and the company filed Chapter 11 in September 2017.
Holiday sales failed to revive the business; the company announced liquidation in March 2018 and closed all 735 U.S. stores.
The liquidation showed that debt service can strangle a recognizable brand even when customers remain loyal.
Like BFG Supply, Toys 'R' Us carried acquisition debt it could not service while operations declined, and Chapter 11 ended in liquidation rather than reorganization.
