Late last night, Toys’R’Us – the largest toy retailer in North America – filed for Chapter 11 bankruptcy. Toys’R’Us has struggled since 2005 when it was part of a $6.6 billion transaction. 12 years later Toys’R’Us is still $5 billion dollars in debt and is faced with over $400 million dollars due in fiscal 2018 which it was not going to be able to pay. Hence the bankruptcy filing.
So what does this mean for all your favorite collectibles? Well, right now – nothing. Chapter 11 bankruptcy is nothing more than a legal stop sign for any creditors trying to collect on the debts that Toys’R’Us owes. It gives Toys’R’Us the ability to reorganize it’s financial debts – which it has already begun with JP Morgan agreeing to finance $3 billion of the remaining $5 billion debt.
As of right now – Toys’R’Us is NOT going out of business. NO store closures have been announced nor are expected during this year’s holiday season. New toys will CONTINUE to come out. Anything that has been announced as a Toys’R’Us exclusive will come out. Toys’R’Us has stated that business operations will continue as normal.
Analysts watching the situation agree that JP Morgan agreeing to finance $3 billion of debt has the potential to allow Toys’R’Us to emerge from the Chapter 11 bankruptcy filing in strong standing. In 2009, Toys’R’Us acquired the remaining assets (namely the name, trademarks, and intellectual property) of KB Toys, the other national toy retailer. KB Toys filed for Chapter 11 bankruptcy in 2004, and later filed again in 2008, shutting down all operations within 3 months of the filing. Ironically, the second bankruptcy filing that killed the business was initiated by a former Toys’R’Us executive who was then acting as CEO to KB Toys and then sold the remaining assets to Toys’R’Us.
EDIT & UPDATE: Chapter 11 has been filed
http://news.tokunation.com/2017/09/1...nkruptcy-45777
The end is nigh
http://www.businessinsider.com/toys-...-report-2017-9
I hate this!!!!!!!
I have literally asked them to bring a store back where I live cause I shouldn't have to go northward for two hours to one of the few in my state! Where I am, they closed the original back in 2002 or 2003. The local mall opened some Express locations around 2011/2012, but the agreements fell through a year or two ago and the last several Winters were without. I believe in Toys R Us and ALWAYS WILL!!! I don't like dealing with Amazon too much for product delivery, and Walmart is a "necessary evil" because of all of the problems in its life (doesn't take much to find Youtube videos slamming their practices)!
Walmart doesn't have near the same level of exclusives and collectible memorabilia and Amazon, well....
I seriously hope that a Toys 'R Us Renaissance results from this, cause a world without them is depressing for kids and 20-somethings with more figures than a toy museum!
I'm not at all surprised by this given the state my local TRU has been in for years. They still have 2009 GI Joe stuff clogging up the place and there comes a point when you just need to stop trying to sell them.
Hell, even barring the local place, their online ordering was pretty terrible. I recall the last time I ordered something from them they sent the bloody thing in a bubble mailer, which is fine for a DVD or Game- but not a figure card. Damn thing was smashed to hell and back.
I'm shock to see this happen. I think with people just buying stuff online on Amazon, less people are going out to buy things at local retail stores.
Eh, I always found them overpriced to be honest. I won't be too mad about this.
There's only one within 20 miles of me.
Oh no.
Now where will Bandai sell their ugly overpriced Zords???
Now where will Bandai sell their ugly overpriced Zords???
Well if they go belly up no worries. There always Gamestop to buy Legacy toys like the Inspace figures lol.
Keep reading: Toys R Us Weighs Bankruptcy Protection - Page 2
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