Attorney Chuck Tatelbaum, whose expertise is bankruptcy law and the rights of creditors, says staggering debt left the giant toy company with no other path forward.
Tatelbaum says Toys “R” Us was 5 billion dollars in debt from a leveraged buyout.
“And if you think what that is on just the interest alone, it kept it from remodeling the stores, from buying inventory, its lines were curtailed and then when it didn’t have a good holiday season, the dominoes sort of began to fall.”
Tatelbaum, a guest on WNPV’s Comment Please By Univest Thursday, predicts Sears and Kmart will close stores due to huge debt. Tatelbaum adds, dollars stores continue to thrive because of low prices.