Please read this case and answer this question:

| Homework Help - Q&A from On x () Topic: Week 2 Discussion 2: Toys X G A Casebook on Corporate Renew X + X C 8 https://www.google.com/books/edition/_/ObVqDWAAQBAJ?hl=en&gbpv=18pg=PR3&printsec=frontcover Sign in b Google Books Page 23 Search in this book Q X Toys and More, Inc. 23 A Casebo performed a four-wall analysis on the 114 stores to find out which By Harlan D. Platt, Ma ones were profitable on an independent store basis (i.e., ignoring + overhead charges). Following this, the bankruptcy court approved her request to shut 16 stores. Leases on these stores were rejected. TAMI assumed the leases on the remaining stores, though before doing so Janie's team successfully renegotiated their terms and con- Preview ditions. For the stores that remained, lease related costs declined by 13 percent. The turnaround team also systematically analyzed the firm's operations, focusing mainly on the distribution, ordering, and Overview Get back-office functions. A variety of functions were outsourced while others were made more efficient. Janie's assessment of the Internet site was pessimistic. Her re- search uncovered the fact that parents buying expensive educational About this edition toys wanted to pick up and feel the items, making them unlikely web consumers. Lester and Julie, who remained on the company's board ISBN: 978047 of directors and who held nineteen percent of its common stock, dis- er 4, 2004 puted her findings. They argued that the site had been profitable and Published: April 1 should be profitable in the future if only the company stocked it with orie B. Platt Publisher: Univers unique and worthy toys. Opposing comments came from the banks whose loans were secured by TAMI's inventories, accounts receiv- Author: Harlan ables, goodwill, and intellectual property. The bank insisted that the Editors: Harlan Internet division be shut. Certain creditors, on the other hand, were pushing Janie to liquidate the entire firm. Reluctantly, Janie sided with the creditors and closed down the web site one Friday near clos- 19 Create Citation ing time. While this action did not improve Janie's standing with re- maining employees it seems to assure support among creditors for the plan of reorganization that Janie was in the process of crafting. Fi- A Casebook on Corporat nally, she agreed to sell the software division to employees for $1 plus inance in the College of turnaround management warrants convertible into 25 percent of its stock. Any future products ortheastern University. surged in the past decad would be shown to TAMI for a right of first refusal. needed by successful tu Janie viewed the plan of reorganization as her principal assign- reorganization; and defin ment. The steps she followed in preparing the plan were as follows. issues. TABLE 3. Toys and More, Inc., Segment Sales Record The cases challenge stu Segment Percentage Sales corporate renewal is pra 2003 2002 2001 2000 second edition of Princi used with other manager Stores 28.6 96.0 36.3 94.5 Web site 2.3 2.4 3.4 Source: Publisher Software 0.2 1.7 1.3 2.1 Get book 48 F Mostly cloudy Search 8:11 PM 5/2/2023