Toys'r'Us lives on because Mattel and Hasbro can't let it die In electronics, Best Buy holds the same last-chain-standing mantle after Circuit City and HHGregg disappeared. In books, Borders went belly up, while Barnes & Noble remains. Similarly, KB Toys perished, and Toys "R" Us will likely limp along. The retailer of last resort, ladies and gentlemen.
Very interesting article. It has me wondering now if it would be possible for companies like Hasbro, Mattel, and MGA to leverage some of their debt to buy part of Toys R Us. Not that that'd necessarily be a good idea, but it'd probably make for an interesting experiment. Kind of like how, sometimes bakers unions buy a brand so they have a distinct product they can all sell and control, instead of catering to whatever brands that hire them.
This is called vertical integration and is subject to the Clayton Antitrust Act. Not to say it doesn't happen, not to say it's always illegal, but it's one of those warning signs that, back in the days of fair business practices, made lawyers itchy.