Hello, I need help commenting on this person's response about Toys and More. I need to ask relevant questions and comment on what they said.

Mistakes Responsible for the Downfall

Toys and More Inc.'s biggest mistakes could be their failure to adapt to changing market trends, which ultimately led to reduced revenue as well as their downfall. As they noticed that increasing competition as well as the dot com bubble burst, the company should have focused on altering the business to adapt to the new reality of the marketplace. This could mean diversifying their product offerings through vertical or horizontal expansion, or even reinventing their current offerings to make them more broadly appealing. The company also expanded arguably too rapidly through debt funding, which greatly increased its long term debt burden. This meant that when revenue began to decline, the business had a difficult time with its debt expenses. Its long term debt remained high at $200 million. As current debt continued to drop, their long term debt was holding the business down. The business should have also recognized that it was struggling and begun to attempt to renegotiate their contracts as well as downsize their operation.

Liquidation Value

Total Assets: $680.60

Total Liabilities: $375.66

Total Liquidation Value: $305.14

Reorganization Plan

A reorganization plan for Toy's and More would include a multi-faceted approach that would implement many changes to the business to improve its operational efficiency. The first step of reorganization would include developing new products, targeting new customer segments, or shifting their focus to e-commerce rather than brick-and-mortar retail. The firm should also consider reducing costs, renegotiating contracts with leases and other debts, and improve operational efficiency in order to get the firm back on track. All of these strategies will revitalize the way the company earns its revenue, as well as reduce how much it's spends on expenses and debt.

This would also be a relevant time for a new or revitalized go-to-market strategy, which would include a bolstered marketing campaign and renewed focus in its niche. This would increase brand awareness which in turn drives greater profits.Creating a financial plan and sharing a plan outline with all stakeholders is an important way to rebuild trust for the internal business ecosystem that will help drive TAMI's success. This will keep TAMI accountable to its peers and will set a certain standard for its success.Lastly, it is important to track the progress of the success of the reorganization and make continuing adjustments if needed. If more expansion is needed, or the reverse, it will be more financially effective to proactively react to the new plan as well as new market conditions before the company runs into more financial hardship.