Stephen Hazelton On Toys R Us Debt [VALUETALKS #8]

Stephen Hazelton On Toys R Us Debt [VALUETALKS #8]

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Stephen Hazelton is the founder and CEO of Street Diligence (full bio below) talks about the decline of Toys R Us which he believes was due to a too high debt load coming from the leveraged buyout a few years ago. Additionally, with Amazon in the industry (AKA Amazon crushing all competitors), Toys R Us was unable to meet the cash flow to pay off the high prior debt load, and was unable to reinvest capital in aging stores, which made them less and less competitive. Stephen thinks that Amazon could make further gains into the Toys industry as a result of the situation. The podcast gets deep into debt financing of Toys R Us with the Delaware Inc subsidiary of the toy company. But Stephen explains the situation in a clear language that even our equity focused readers will understand! Additionally, we have an important lesson related to confidentiality and how it can destroy a company - beware journalists!

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Per Street Diligence's website

Stephen founded Street Diligence in 2012 and has two decades of experience in global financial markets as both an entrepreneur and investor. Prior to starting Street Diligence, Stephen was Managing Director of Savoy Capital, an investment firm and family office, where he led the firm’s investment activities. He is a second-time entrepreneur, having previously founded Stafford Group, a Vietnam-based brokerage firm still in operation today under new ownership. Stephen is a frequent speaker on entrepreneurship and the credit markets. He holds a B.A. from Yale University and an MBA from MIT Sloan, where he was awarded the Peter Englander Fellowship.

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By Terence Ong (Own work) [GFDL, CC-BY-SA-3.0 or CC BY-SA 2.5], via Wikimedia Commons

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Jacob Wolinsky is the founder of, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at) - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver
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