Toys "R" Us files for bankruptcy protection due to debt, relentless competition

Posted September 21, 2017

The turmoil stirred up by the Toys R Us bankruptcy has also caused pain for the asset managers responsible for taking the company private in 2005.

The move would ensure the Canadian subsidiary of the global toy retailer - which applied for creditor protection in the USA on Monday and in Canada a day later - has an uninterrupted supply of merchandise as it heads into the busy holiday shopping season. Merchandise is sold in 885 Toys " R " Us and Babies " R " Us stores in the United States, Puerto Rico and Guam, and in more than 810 worldwide stores and over 255 licensed stores in 38 countries and jurisdictions.

"Shopper behavior is shifting more rapidly - from brick-and-mortar to online - than many retailers, including big-box, are able to adjust".

It is a sub-licensee of Toys " R" Us (Asia), which is not part of the court-supervised financial restructuring.

The Asian toy company's president, Mr Andre Javes, said: "We are a financially robust and self-funding retail operation, which continues to significantly grow and invest in this region".

Toys "R" Us is the second-largest toy seller in the U.S. behind Amazon, according to consulting firm Kloster Trading Corp. The toy chain has received a commitment for more than $3 billion from new and existing lenders to ease its debt burden and fund operations during bankruptcy.

Customers can continue to count on outstanding service whenever, wherever and however they want to shop.

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Did you know that it has just filed for bankruptcy protection?

In the United Kingdom so far this year, according to data from the Centre for Retail Research, companies in administration so far this year has already exceeded the levels seen in 2015 and 2016, though the number of stores and employees affected has been less, but there has been a consistent pattern of a changing retail landscape since 2008. Similarly, KB Toys perished, and Toys "R" Us will likely limp along. Other signature elements of the Mastermind Toys shopping experience include knowledgeable staff; free in-store gift-wrapping; compelling promotions; and valuable social enterprise partnerships with organizations like WE.

Since Charles Lazarus opened a baby furniture store in 1948, Toys "R" Us has grown into the leading retail brand that caters exclusively to kids, toys and games.

The bankruptcy news comes less than a month after the company decided not to take pre-orders on the SNES Mini, which previously sold out within minutes across retailers from Amazon to Target.

The Associated Press reported that GlobalData Retail estimates that in 2016 about 13.7 percent of toy sales were made online, up from 6.5 percent five years ago.

"In 2018, they'll begin the long, torturous and inevitable corporate restructuring that will close stores, lay off employees, and reduce inventory as the struggle to compete with the likes of Amazon". Toys " R " Us continues to operate its business in the ordinary course in terms of its customers, team members, vendors and partners.