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If the debt load was excessive on an otherwise OK business then the debt would be restructured vs. putting the company into liquidation. The idea that absent the debt Toys R Us would have figured out how to invest in innovation is totally speculative. This is a badly reasoned article.

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That is partially up to the lenders though. The lenders have their input in bankruptcy court, and if they tell the court they want their money the court tends to listen. Lenders will generally agree to bankruptcy because it is better to be paid off in the future than take what they can get now. If the lenders don't think the company can actually find a way to pay off the debt that might want what they can get now so they can put it to better use.

My understanding is the debt was so high the lenders figure anything that happens is just throwing good money after bad.

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