They had electronics and legos, not just models and hot wheels. I think they’d have adapted like most businesses have.
Toys R Us still exists where I live (Canada). I admit I don't go in often outside of holiday shopping, but it's still the same Toys R Us it's always been, natural shifts in toy inventory notwithstanding, of course.
I'm not sure why you're riding for the predatory PE firms, here. "That's why they don't exist"? My brother in Christ, they still do - and still would if it weren't for this aggressive bullshit.
from my original post: "even though I agree with you that PE sucks."
if you're missing basic points like that, no wonder you're confused.