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Toys R Us to close or sell all stores in US

17 March 2018
Toys R Us to close or sell all stores in US

Reminisce and enjoy the collection of classic Toys R Us commercials below. It is exploring a reorganization and sale of its Canada division and other worldwide operations.

Started in 1948, Toys "R" Us was a retail force throughout the 1980s but, facing pressure from larger stores with deeper discounts as well as the online retail boom, it was taken private in 2005 by a consortium of investors that included the KKR Group and Bain Capital. According to The Record, the company's debt payments were as high as $400 million a year, and were particularly crushing when the recession hit in 2008.

"In connection with the sale process, the motion the Company filed with the Bankruptcy Court included bidding procedures for the Canadian operations".

Viewers wanted to know if Babies R Us will also be closing.

A history of bungling e-commerce. For Christmas 2017, earnings were about half of what the company might expect in a normal year, according to USA Today. There was the rise of big box retailers like Walmart, which now dwarfs Toys "R" Us in total toy sales.

"I spent nearly every Saturday here for a couple of years with my dad walking through Toys R Us and then heading over to Barnes and Noble and spending hours at each one", Dedmon said.

Toys "R" Us has declared bankruptcy.

The store environment didn't change enough. And eventually a generation came of age in a world where you didn't need to go to a store to buy toys.

But even struggling retailer JCPenney is making a bigger bet on toys lately, opening up specialty shops previous year for toys made by Hasbro, Mattel, Lego and other leading brands.

Toys R Us stores in Hawaii will be closed May 14, and 48 employees have been given termination notices, state Department of Labor filings say.

Toys R Us has been hurt by the shift to mobile devices taking up more play time. In recent years, they tried to ramp up in-store events, making their outposts more experiential and giving shoppers a reason to visit more frequently.

That would leave its Canadian stores among the few left standing. That made its lenders more skittish about investing in the company.

Toys "R" Us bought FAO Schwarz in 2009 but it was later sold to consumer products company ThreeSixtyGroup in 2016.

Recently, baby business sales have suffered, struggling to compete with the low prices and enticing free-shipping promises of Amazon and Walmart Inc. Other chains, seeing that Toys R Us was vulnerable, got more aggressive. Kids are spending more time on tablets and smartphones.

"It's a very convenient place", she said.

Shorter-term issues added even more pressure. And big stores, such as Walmart and Target, are less likely to sell smaller brands because they have less space to sell toys.

The Canadian operations of Toys "R" Us are managed in Canada and operate autonomously from the USA operations, giving them a separate and healthy balance sheet, said Satov, but any buyer would still need to push for a discount.

According to Thursday's filing, it would cost Toys R Us up to $100 million per month to keep just 400 of its USA stores operating through the end of the year, not including the expenses of any necessary building repairs or unforeseen circumstances. Toys R Us blamed its "old technology" for not offering its own subscriptions.