Hello, I need help commenting and asking relevant questions about this person's response on Toys and more.

Which mistakes were most responsible for the downfall?

Mistakes that contributed to Toys and More Inc.'s downfall include:

• Poor strategic decisions:
  • Founders were subject to an overconfidence bias after the success that they experienced at the beginning which led to the over-expansion of the company in a short amount of time. The decision to open many stores ended up affecting them financially. This overconfidence also prevented them from anticipating physical threats such as Walmart but also online threats with the rise of online stores and therefore strategizing accordingly.
• Poor financial management and Ineffective cost management
  • Looking at the company's financial statements, we can observe that right from the beginning had high SG&A expenses almost amounting to its gross profit, which resulted in lower net income margins. The company seemed to have made a lot of unnecessary and ineffective costly decisions.
• Incapacity to innovate:
  • The company failed to produce and create new products that would have allowed it to stay competitive in the market.
• Poor corporate management:
  • Misalignment between the needs of the market and its context and the company management vision, and creditors' need ... which was demonstrated by the lack of consensus when it came to the website management.
  • The company lacked a strong board of directors which led to weak oversight and risk management.

What is the liquidation value?

The liquidation value of TAMI is $305.14 million which comes from the difference between $680.80 million of total assets and $375.66 million of total liabilities.

Develop a simple plan of reorganization.

A simple plan of reorganization for TAMI could include first of all conducting a review of the company's operations and finances to identify the areas that could be improved which costs could be cut figure out the areas of improvement to then start strategizing on operational efficiency, improve liquidity and profitability. Secondly, the company should also revise its positioning to do so by conducting market research performing, for example, pestle analysis and swot analysis to better understand the needs of the market and customers, look for areas of differentiation just set them apart from the competition and finally focus on building a strong and sustainable value proposition. Finally, once the research is conducted and the company's positioning and value proposition are identified, the company should look into how to market itself invest in strategic marketing, and figure out its sourcing and partners for production. With that, the company should make sure that they have a strong team in place with a vision that is shared with all parties.