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Debt

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Debt

InstitutionClaim Cited

Toys "R" Us

Toys "R" Us built a category-defining retail system, then entered a leveraged buyout whose debt claims consumed room for store and digital renewal; competition was real, but capital structure determined how little error and time the company could afford.

How does a capital structure become an operating constitution—deciding how much time, investment, and error a retailer can afford before customers and suppliers lose confidence?