We’ve been sharing Toys’R’Us news stories on our Twitter account @TokuNation a lot lately. The reason we’re doing that is because as a site that frequently promotes toys and collectibles, losing the largest toys and collectibles retailer in the world is kind of a big deal.
Toys’R’Us is expected to file liquidation papers today (Wednesday) to give to the court tomorrow (Thursday). This will officially mark the end of Toys’R’Us in the United States as we know it. A report from the Wall Street Journal states that CEO David Brandon announced to home office personnel in a conference call today (Wednesday) that the company is filing liquidation papers today for the court hearing tomorrow (Thursday).
Earlier today, Toys’R’Us UK also announced liquidation with all UK stores closing within the next 6 weeks. Toys’R’Us Canada is seemingly in a better place financially with no updates on their situation, and Toys’R’Us Asia is actually profitable and is expected to be sold to other shareholders in China turning them in to majority shareholders and giving them control of business operations.
A report from CNBC has come out stating that Toys’R’Us may also keep up to 200 US stores open after liquidation, combining those stores with the Toys’R’Us Canada operation, effectively making Toys’R’Us (in the US at least) a Canadian retailer operating in the United States. Those 200 stores would undoubtedly be profitable stores with favorable real estate deals. However, at the time of this posting, there is no concrete information available to share on that note.
As more news breaks we will share it with you. A complete liquidation of US Toys’R’Us stores will result in a 33,000 loss of employees, making it the largest retailer to shut down (in terms of employee size) since Sports Authority went out of business at the end of 2016. Our thoughts are with all the families suffering with the fate of their future paychecks.
Will share the news as it comes up
Somewhat good news, but still sad to see so many people lose jobs. Retail needs to thrive to allow certain people to have jobs. Not everyone can afford or make it through college.
33k losing jobs is sad. At least 200 stores may survive, probably mostly on the coastal cities, but still bittersweet as TRU has a chance to still be seen by kids and future generation(s) at least I hope it's a silver lining.
If Toys R Us gets permanently closed down, where the hell are the kids going to buy their toys now?
Heck, according to a thread on /toy/, Walgreens might become a more dedicated toy retailer now and return to an era when drug stores regularly and actively stocked toys more than just in a token way, with NES consoles even being sold at them back in the 80's.
Bankruptcy sucks.
Sad, but the golden age of these types of stores has long past. Besides stiff online competition kids just don't play with toys very long if at all. The age window grows shorter with each generation.
This had less to do with declining sales and more to do with the torch and burn industry that is equity firms, but sure. Let's keep saying that competition is what did them in.
And that's all I'm saying on this matter.
Well... at least TRU UAE is still around... for now...
Keep reading: ToysRUs - Liquidation and Closings thread - Page 2
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