I have been following the trend in business. I have seen many things go wrong in upper management. We tend to believe owners of large businesses like Toy’s R Us that have been around for ages are rich. In the last ten years from the Financial Crisis, and the Great Recession that followed, more large businesses have taken on loads of debt to try and survive the hard times.
Most of us have thought they “have plenty of money” when it is on the news that large companies are financially struggling. The reality is they are still reporting beautiful net income monthly and annually due to high levels of debt, not following changes in demand according to customer behavior, and other vital parts to remain “successful, not just survive.”
Toy’s R Us was owned by one single man. Many of us would have thought it to be a corporation, but it was not. He owned all the location around the United States. With relations with some people on the inside, I have found out that they were one of the many that did not make changes causing a loss of business. As more stores like Wal-Mart starting carrying toys, and almost all of the same toys, there began to be too much competition with the high prices Toys R Us continued to charge. They missed out on changing prices to be more competitive, or bring on more products, and other things that should have been done to keep them “the place to go for toys.”
The owner was in debt in payroll, business bills, personal bills and much more filing bankruptcy in the beginning of the Summer 2018. He filed bankruptcy on a claim of $50,000,000 Debt. The loss, inability to clear out the toys, and stress all together of the situation killed the owner, literally, to be on the death bed that same day. The place ended up shutting down totally before clearing out all the toys due to the passing of the owner.
I have consulted many business professionals in different roles in business, to make better decisions. These stories are back up for why I always encourage constant changes to occur that are way of improving business, and demand. To stay the old schooled way, is asking for business failure.
I have followed business news only to see this same type situation happen to many of restaurants, retail, and service based businesses that are large one thought to be rich since then.
If you are a business owner, decision maker, future owner, or any other role in which you want to make better decisions to not let the next be you, send me your questions here on the blog. If you need lots of questions addressed, contact me via phone at 346-800-1912 for in-person Business Consulting.