Toys 'R' Us Has Filed For Bankruptcy Protection
By Ambia Staley
September 19, 2017Following days of rumours, it's now official -- Toys 'R' Us has filed for bankruptcy protection.
Late Monday night, the toy retailer announced that they have filed for Chapter 11 bankruptcy protection in the U.S. and that they intend to follow suit in Canada.
Dave Brandon, company CEO said in a statement, "Together with our investors our objective is to work with our debt-holders and other creditors to restructure the $5 billion of long-term debt on our balance sheet, which will provide us with greater financial flexibility to invest in our business ... and strengthen our competitive position in an increasingly challenging and rapidly changing retail marketplace worldwide."
Despite the filing, the company claims that Toys 'R' Us and Babies 'R' Us stores will continue to run as usual. Customers will also be able to continue shopping online for their toys and baby products. The company also stated that it's committed to working with vendors to make sure their inventory levels are maintained.
Toy's 'R' Us employs nearly 65,000 people worldwide and runs approximately 80 stores across Canada and 880 stores in the United States. They also have approximately 780 international stores and more than 245 licensed stores -- none of which are impacted by the filings in the U.S. or Canada. While Toys 'R' Us maintains that it intends to run as usual, there is no official word about whether the company has plans to close unprofitable stores, or lay off any of its employees.
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View allThey are trying to make going to the toy store an experience again.
The previous owner gave it a try.
Some locations actually looked very busy while others were a total flop. Hit and miss, I suppose.
C$300 million transaction would allow stores to remain open
https://www.bloomberg.com/amp/news/arti ... adian-unit
The guy floating the deal tried to crowdfund part of it - that is not the greatest sign: https://www.gofundme.com/helpsavetoysrus
Note that this is for a larger scope than just the Canadian op and that $200M of the $200.04M raised so far is the money of the guy that started the campaign
Management teams can never be trusted.
http://www.cbc.ca/amp/1.4588691
Writing's on the wall.
I believe they just improved their website until these 2 years as well, shipping used to be expensive and many items only available in the stores
I never really understood the appeal of buying Toys online. The joy of buying Toys is taking your kids there and trying things in person. Didn't anyone ever see the movie "BIG"?
I think the real story is how much kids are now into smartphones and tablets and electronics. I know of some kids as young as 8 with smartphones and Dataplans. I think that is disturbing.
I predict that in 100 years, all newborns will receive a datachip planted into their brains. The chip will do everything from monitor the baby's health to downloading Virtual reality based video games.
The VR you talk about already existed which is including the measurement on movement of full body. However, it is very expensive and take a while to do the full measurement. It is now mostly used to train athlete on country level. However, if you ever work in fashion industrial, then you will know accurate measurement doesn't necessary mean comfortability. No matter how accurate your measurement, it is totally different story once you wear the clothes or shoes. Fashion style is one of the key factor to impact the comfortability. Real tailor made clothing requires repeating steps of "test and measurement". One step measurement is not going to work. People working on tailor made clothing will understand what I mean. However, if the clothes preset into certain size like (S, M, L), then using VR to find the best fit will work.
As for VR, I'm not talking VR as we know it now. I'm talking VR of the future. Where our whole body is measured or scanned and registered with a VR database. I'm imagining this VR company being it's own seperate entity that all companies need to register with to keep clothes and shoes at spec. Not only that but this company will provide customized accessories for your body with haptic feedback. So you can try on those new shoes at home and really experience how they feel.
I just can't see the future where people need to drive to stores to try on a pair of shoes or a new dress jacket or a bathing suit. We have the ability to manipulate our senses right now but we are not using this technology to its full extent. Future VR will definitely allow us to do this.
It's all baby steps unfortunately.
VR clothes service will not be able to help customers on fitness of clothing. We are not static, we are a moving object. As we move, we can experience the comfortability of the clothes. This can be found out ONLY if customers actually try on the clothes. Same thing happen to shoes. A shoe fit to you doesn't mean you will feel comfortable when you run or walk. Nevertheless, the VR can offer customers visual advice on clothing.
If the new owner does the same way as it now, even the stores in Canada will not survive very long. They need to spend money on investment creating new generation of toys.
I think VR shopping is the way to go for Walmart next especially for people that need the visual appeal. That way they can change their brick and mortar stores into warehouses and delivery services. For example the VR clothes service: put in the dimensions of your body and as long as clothing company's register with the VR program you could try on clothes online and have a perfect fit.
Amazon is going the opposite way and opening up brick and mortar stores which in the long run I don't think is a good idea even if it's cashierless. I guess time will tell.
Gregor said that some of the valuable real estate owned by Toys “R” Us in Canada includes a site directly south of CF Sherway Gardens, a location in Vaughan, one in Kitchener, one in Barrie and another in Hamilton, opposite the Lime Ridge mall.
“This is an attractive company, just for its real estate holdings,” said Gregor, who estimates the value of its real estate at $150 million in Ontario alone.
When Sears mentioned that they found someone to add groceries to their store they failed to mention who that would be.
I think they outright lied. There was no grocery investor.
At least Toys r us can honestly name a company showing interest. THAT is the difference.
https://www.washingtonpost.com/news/bus ... 01550db1e1
Canada is a smaller market and will follow the same fate eventually. Toys R Us Canada is looking for a buyer to keep their operations going.
https://www.thestar.com/business/2018/0 ... iness.html
This is only in the States and the U.K.
Toys R us Canada is solid and strong, also doing well with Babies r us.
As long as MGA entertainment goes ahead and invests in Toys r us and babies r us Canada, the company will survive.
https://www.theglobeandmail.com/report- ... e38292661/