Why was carrying so much debt a problem for Toys ‘R’ Us?
A.It forced them to move to smaller retail space.
B.Managers were unaware of how much debt there was.
C.It could not afford adequate marketing due to the debt.
D.The interest payments were using up a substantial amount of revenue.
D.The interest payments were using up a substantial amount of revenue.
Carrying a large amount of debt was a problem for Toys 'R' Us because the interest payments on that debt were using up a substantial amount of revenue. This limited their ability to invest in other areas of the business, such as marketing, innovation, and improving their stores, ultimately making it harder for them to compete in the retail market.