What shoppers have to say about Toys R Us seeking bankruptcy protection
- Author: Rogelio Becker Sep 21, 2017,
Sep 21, 2017, 0:24
Toys R Us has struggled with debt since private-equity firms Bain Capital, KKR & Co. and Vornado Realty Trust took it private in a $6.6 billion leveraged buyout in 2005.
Toys "R" Us' "move comes on the cusp of the all-important holiday season, a period in which many retailers earn almost half of their annual revenue, and a time of year that is particularly lucrative for the giant toy seller".
The store says it will continue to honor return policies, gift cards and customer loyalty programs.
Toys "R" Us has been facing fierce competition from online giants, as well as discount stores.
The Toys R Us filing - just the latest in a string of high-profile bankruptcies - comes on the heels of the all-important holiday shopping season.
"We are confident that we are taking the right steps to ensure that the iconic Toys " R " Us and Babies " R" Us brands live on for many generations", he said in a statement about the filing. And he says the company should have also thought of new ways to attract more customers in its stores, such as hosting birthday parties.
This division is crucially important to Toys "R" Us.
President of Toys "R" Us (Asia) Andre Javes said: "We are a financially robust and self-funding retail operation, which continues to significantly grow and invest in this region".
While the retailer's actions may not be as blatant as the black-doll test of the 1960s, watching a little girl walk through an avalanche of dolls in any Toys R Us in Anywhere USA, desperately trying to find a doll that looks like her, is a painful experience.
The company faces US$400 million in debt payment, which falls due in 2018, and was burning through its cash. The company is seeking $3 billion in bankruptcy financing, which is subject to court approval, to buy merchandise from its vendors and fund operations.
"I remember being a young child and you know I'd go on Sunday with my parents to Toys "R" Us, get a toy for me", said Knowles. Same-store sales have fallen for three straight quarters.
Toys R Us is notoriously terrible when it comes to product diversity and displays, and always has been.
Still, while investors seem to think Mattel and Hasbro can shake off its Toys "R" Us woes, another company, Spin Master, has fallen another 1% on the Toronto Stock Exchange Tuesday.
"For many children, electronics have become a replacement for traditional toys", Saunders said.