Built the first category killer for toys — supermarket-style selection where every toy existed in one place. Rode the big-box wave to 1,600 stores in 20 years. Owned 25% of the US toy market and 98% brand recognition.
Discounters like Walmart and Target doubled store sizes and stocked the top 70% sellers dirt cheap, making separate trips inconvenient. E-commerce emerged, and Toys R Us handed Amazon its toy business for $50M/year. Then private equity loaded $5B debt requiring $400M annual interest — handcuffing reinvestment just as tablets disrupted toy demand.
Chapter 11 in September 2017. Suppliers stopped shipping before Christmas. Liquidated March 2018. Founder Charles Lazarus died one week after closure. 33,000 jobs gone.
