Two years after running the oldest toy company in the world, FAO-Schwarz, into the ground after just seven short years of ownership, debt-laden Toys-R-Us, Inc. has been stomped into Bankruptcy after a tumultuous decade of lost market share to online competitors who walked all over them and their 1600 brick and mortar locations.
“Today marks the dawn of a new era at Toys ‘R’ Us where we expect that the financial constraints that have held us back will be addressed in a lasting and effective way,” Dave Brandon, chairman and chief executive of Toys R Us, said in a statement. “… We are confident these are the right steps to ensure that the iconic Toys ‘R’ Us and Babies ‘R’ Us brands live on for many generations.”
Via Bloomberg:
The company listed debt and assets of more than $1 billion each in Chapter 11 documents Monday in U.S. Bankruptcy Court in Richmond, Virginia. Prior to filing, the chain secured more than $3 billion in financing from lenders including a JPMorgan Chase & Co.-led bank syndicate and certain existing lenders to fund operations while it restructures, according to a company statement. The funding is subject to court approval.
The company didn’t announce plans to close stores, and said its locations across the globe would continue normal operations.
“Like any retailer, decisions about any future store closings – and openings – will continue to be made based on what makes the best sense for the business,” Michael Freitag, a spokesman for Toys “R” Us, said in an email.”
For decades, the Wayne, NJ based retailer was the preeminent toy company in the world, with its flagship location in New York’s Times Square and their well known icon, Geoffrey the Giraffe.Toys-R-Us’s fall from grace “brings to a close a turbulent chapter in the iconic company’s history,” Neil Saunders, managing director of GlobalData Retail, said in an email. “Even if the debt issues are solved, Toys ‘R’ Us still faces massive structural challenges against which it must battle. The jury is out as to whether it can adapt enough to survive.”
Amazon is taking over the world, mind you. For those living in major metropolitan areas, Amazon can ensure you never have to drive to the store and slug it out over a spiral-cut ham again with their Fresh delivery service. Receive organic groceries to your door before 7AM for $16.66 / month in insulated bags – in many cases at lower prices than local stores. Need it sooner than overnight? Amazon’s Prime Now service will send a driver to one of 5 or 6 stores in your area with free delivery over a certain dollar amount, unless you need it within in an hour – which costs under $10 for the rush. For $40, Amazon’s Firestick provides just about everything you want – including the growing Amazon video library, Netflix, Hulu, Kodi, etc. – and lets you subscribe to channels like HBO a la carte if you aren’t a pirate.
And – I’m fairly certain Amazon carries just about everything Toys-R-Us sold, at lower prices, with better reviews.
I take my kid to Toys R Us twice a year. Once before their birthday and Christmas so they can write up a list of things they are interested in and generally end up buying stuff elsewhere since Toys R Us is usually the highest priced.
They were my largest customer when I owned a children’s video distribution company years ago. They’ve been in financial trouble for years. Tough biz.
I take my little one there to play with their toys. If we’re interested in buying anything, we get the same items on the net, tax free and usually at half the cost.
So what is the difference of this vs bby
Out with the old and in with the new.