So the reason I didn't go into this is because it's tiring seeing this same thing trotted out over and over again- yeah, so what? This wasn't a factor, at all, in the demise of TSR. If someone has receipts showing that this was some backdoor to funnel money to Williams, then I will gladly change my opinion! Otherwise ...
From Jose Freitas in an earlier thread:
But I am quite convinced that Ms. Williams really ran the company to the best of her abilities, which were very good, but this meant that she ran it to benefit herself to the exclusion of anyone else, employees included. There are some very fine lines re. ethical issues, but one might very well question the continued release and overprinting of a game that was really selling close to zero, while paying yourself royalties advances based on 60% of the printruns. And since I was a partner of a company that distributes RPGs and MtG and WotC products in general in Spain, Portugal and Brasil, and I was there when WotC bought TSR, and talked to pretty much everyone, including Peter Adkinson, I was told there were TONS of unsold Buck Rogers in the 25th Century RPG in the warehouses.... And at the same time that Ms. Williams got paid a really good salary, employees were underpaid, given bad equipment to work on things, etc.... Just read Ryan Dancey's accounts of what he found when he went and audited TSR for WotC before they bought it.
Edit: Bah! Beaten to the punch by @Voadam !