Poll of the Day > Toys R' Us to close all 800 Americans stores next week after $5 billion debt

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Locusts
03/09/18 7:42:51 PM
#1:


The big box retailer filed for chapter 11 protection in September with the hopes of reorganizing its roughly $5 billion debt load, revamping its stores and operations, and continuing as a mainstay toy business.

Troubled toy chain Toys R Us Inc. is preparing to liquidate all of its U.S. stores and abandon efforts to restructure through the bankruptcy process, people familiar with the matter said, after a weak holiday season torpedoed plans to reorganize.

Toys R Us was hurt by the rise in online shopping and shifting trends that saw more kids choosing to play with iPads over Barbie dolls and Hot Wheels.

According to data from S&P Global Market Intelligence, which is able to track Toys R Us' fortunes through its SEC filings as an issuer of public debt, Toys R Us reported losses of more than $600 million through the 12 months ending Oct. 28, 2017, and hasn't reported a full-year profit since 2013.

Reports that Toys 'R' Us could close all of its more than 800 stores as early as next week had a big impact on toymaker stocks on Thursday.

Mattel Inc., which makes toys including Barbie and Hot Wheels, saw its stock fall as much as 6.1 per cent. Meanwhile, while Hasbro Inc. which produces Mr. Potato Head and My Little Pony stocks dropped 3 per cent.

British banker Barclays says Toys R Us could take Mattel down with it. According to Mattel's SEC filings, Toys R Us is among Mattel's three largest customers, accounting for $400 million of the toymaker's sales.

It's anticipated that toy manufacturers will suffer if Toys 'R' Us does liquidate in the US, as the company accounts for about 15 per cent of American toy sales. In addition, Toys 'R' Us was known for giving small companies and new products a chance, whereas other toy-selling retailers, such as Walmart and Target, prefer to go with tried-and-true merchandise.


http://www.dailymail.co.uk/news/article-5483541/Bankrupt-Toys-R-prepares-liquidate-stores.html
https://www.bloomberg.com/news/articles/2018-03-09/toys-r-us-downfall-is-ominous-reminder-about-debt-laden-deals
https://finance.yahoo.com/news/does-toys-r-us-apos-170444455.html
https://www.wsj.com/articles/toys-r-us-considers-closing-all-of-its-u-s-stores-1520549311
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streamofthesky
03/09/18 8:08:02 PM
#2:


Almost as sad as when KB Toys went down (damn you, Romney!)
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Mead
03/09/18 8:08:42 PM
#3:


Im amazed they lasted this long
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InfernalFive
03/09/18 8:11:55 PM
#4:


Mead posted...
Im amazed they lasted this long

Yeah their prices were always pretty ridiculous. Figured they would've closed down at least 10 years ago.
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Jen0125
03/09/18 8:13:26 PM
#5:


i wonder if animal crossing amiibo cards will be on sale
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Questionmarktarius
03/09/18 8:14:48 PM
#6:


Jen0125 posted...
i wonder if animal crossing amiibo cards will be on sale

I wonder if anything will be on sale, or if it'll all just be warehoused and sold on Amazon or something, or marked up just to claim a "sale" price that Walmart or Amazon undercut anyway.
Liquidators tend to utterly suck at actual decent deals.
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darkknight109
03/09/18 8:15:47 PM
#7:


There's something undeniably sad about this...
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ssj4supervegeta
03/09/18 8:17:10 PM
#8:


They probably shoulda tried to branch out more. idk do more with online sales and maybe try something crazy like toy vending machines or something.

but what do i know. hope the toys r us workers can find new jobs quick.
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OmegaM
03/09/18 8:17:33 PM
#9:


I guess I should go to the Toys "R" Us near me and see if there are any good sales. Actually, I had been able to find a few video games there that I hadn't been able to find at GameStop---which is where I always go first due to my PowerUp Rewards card >_> (just the free version).
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Far-Queue
03/09/18 8:18:56 PM
#10:


Questionmarktarius posted...
Jen0125 posted...
i wonder if animal crossing amiibo cards will be on sale

I wonder if anything will be on sale, or if it'll all just be warehoused and sold on Amazon or something, or marked up just to claim a "sale" price that Walmart or Amazon undercut anyway.
Liquidators tend to utterly suck at actual decent deals.

I live very close to a Toys R Us and they are having a massive liquidation sale. Some pretty good deals.
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Questionmarktarius
03/09/18 8:20:20 PM
#11:


Far-Queue posted...
I live very close to a Toys R Us and they are having a massive liquidation sale. Some pretty good deals.

I guess I'll stop by the local one tomorrow...
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Solid Sonic
03/09/18 8:21:04 PM
#12:


This sounds just like Sports Authority. They had a plan to restructure in the wake of their Chapter 11 filling but then just gave up the ghost and decided to go down for good.
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BlackScythe0
03/09/18 8:22:33 PM
#13:


This is what happens when you get people in charge that have no clue what they are doing. Pretty sure I heard the current CEO has "athletic director" as his prior work experience >.>

They were trying to make the company some sort of "service" rather than focusing on selling shit. Like literally the first thing they did after filing bankruptcy was push though some sort of shitty "augmented reality" game in the stores.

But I guess this isn't a shock when you do less than 50% of the projected budget for the season. Though whether that is due to actual bad sales or incompetent budget making is hard to tell.
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Zeus
03/09/18 8:25:35 PM
#14:


ffs...... ugggggggggghhhhhhhh... damnit.... Oh well, guess whatever I want will also be on Amazon but I'm going to miss their clearances.

EDIT: Misleading headlines. WSJ notes that it's "considering" closing all of its stores and Daily Mail notes that the decision to liquidate everything could come next week. So it's not technically over just yet.
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Veedrock-
03/09/18 8:26:55 PM
#15:


It'll be back, the brand is too big to disappear entirely. Remember when Hostess died a couple years back? Neither do I.
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BlackScythe0
03/09/18 8:27:44 PM
#16:


Veedrock- posted...
It'll be back, the brand is too big to disappear entirely. Remember when Hostess died a couple years back? Neither do I.


... Hostess isn't a store it was literally just licenses to food.
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Golden Road
03/09/18 8:28:20 PM
#17:


Mead posted...
Im amazed they lasted this long

I'm surprised how much they're suffering. I would've thought a toy store would've been one of the most likely kind of places to survive in an e-commerce world, because of the nature of its target audience. Kids can't appreciate buying something online the same way an adult can.
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Zeus
03/09/18 8:36:21 PM
#18:


streamofthesky posted...
Almost as sad as when KB Toys went down (damn you, Romney!)


Huh, was that the work of Bain Capital? One more reason to dislike the guy, I guess.

darkknight109 posted...
There's something undeniably sad about this...


End of an era, really. They're also the last real major toy retailer out there, so... I guess that's that. It's a brand that most of us grew up with so it's a little depressing.

Plus I'm going to miss their occasional exclusive stuff, like legendary Pokemon promos.

Questionmarktarius posted...
Far-Queue posted...
I live very close to a Toys R Us and they are having a massive liquidation sale. Some pretty good deals.

I guess I'll stop by the local one tomorrow...


I'm lazy, so I'll probably give them a call first. I stopped in mine back in either early Feb or late January, which I guess was before anything major... although I did pick up a ton of cheap Skylanders and some cheap Disney Infinity stuff (I probably should have bought the other system starter packs at the time. Meh.)

Golden Road posted...
Mead posted...
Im amazed they lasted this long

I'm surprised how much they're suffering. I would've thought a toy store would've been one of the most likely kind of places to survive in an e-commerce world, because of the nature of its target audience. Kids can't appreciate buying something online the same way an adult can.


This so hard, although I guess parents can just take their kids to a Target or Wal-Mart and let them fool around in the toy section while they shop.
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AllstarSniper32
03/09/18 8:38:41 PM
#19:


When I used to buy Spawn action figures, I always bought them from Toys R' Us.
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Questionmarktarius
03/09/18 8:38:59 PM
#20:


Zeus posted...
although I did pick up a ton of cheap Skylanders and some cheap Disney Infinity stuff

I wonder how much the complete implosion of toys-to-life led to TRU's implosion.
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Firewood18
03/09/18 8:39:47 PM
#21:


Is this the effect of allowing Amazon and Walmart to become monopolies?
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TheWorstPoster
03/09/18 9:25:03 PM
#22:


I remember the last time I went to one.

It was when the 3DS launched, and I only went there for a "Buy 1 get one 50%" deal for games, rather than at Gamestop.

Picked up Ridge Racer 3D and Super Street Fighter IV: 3D Edition.
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Zeus
03/09/18 9:51:16 PM
#23:


Questionmarktarius posted...
Zeus posted...
although I did pick up a ton of cheap Skylanders and some cheap Disney Infinity stuff

I wonder how much the complete implosion of toys-to-life led to TRU's implosion.


Now that you mention it, they did seem to invest a lot of floor space on those lines... although the same was true for other retailers as well. I also picked up a mess of Skylanders stuff on clearance through Best Buy at a buck apiece and kinda wish I had just bought everything I didn't have... although it's monstrously impractical since, despite being small, they kinda take up a lot of space.
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LinkPizza
03/09/18 10:31:17 PM
#24:


Mead posted...
Im amazed they lasted this long

I'm not. They actually had pretty good sales sometimes. And that might be enough to keep them afloat for a little longer. Even if it's not the best in the long run.

I'm at going to miss them, though. I remember always going there as a kid. It's was one of those places I always wanted to go. Granted, when I got older, I stuck more to the video games...

I think the last time I went there, I found a game I could find anywhere else that I wanted. They only had one copy, though. I ended up buying it and giving it to my brother. I can't remember why. Like if it was his birthday. Or a Christmas present or something...
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Questionmarktarius
03/09/18 10:38:26 PM
#25:


LinkPizza posted...
I found a game I could find anywhere else that I wanted.

I managed to buy three PS3 memory card adapters, on sale, when they had become unicorns everywhere else.
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DarkKirby2500
03/09/18 10:47:59 PM
#26:


The market for toys just isn't the same anymore. I see more kids lugging around tablets and playing on smartphones than with physical toys.
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Conner4REAL
03/09/18 11:06:46 PM
#27:


Didn't mattel try to murder Ted a few years ago? Or was that hasbro?

All these dieing toy companies are the same to me.
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EliteGuard99
03/09/18 11:10:51 PM
#28:


I have fond memories there as a kid but now as an adult, Jesus was their stuff so massively overpriced.

Im honestly surprised theyve stayed in business as long as they did.
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ThanatosMace
03/09/18 11:38:23 PM
#29:


Oh shit, I have like $100 in unredeemed Toys R Us gift cards.
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Questionmarktarius
03/09/18 11:44:13 PM
#30:


ThanatosMace posted...
Oh shit, I have like $100 in unredeemed Toys R Us gift cards.

better hurry.
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NeoSioType
03/09/18 11:44:54 PM
#31:


Toys R Us had some cool stuff but even in the mid 90's and early 00's they weren't that amazing, imo.

A very large portion of their stock was Babies R Us stuff. But maybe that was keeping them afloat?
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Ickeryy
03/09/18 11:57:26 PM
#32:


Darn millenials ruining another industry.
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Questionmarktarius
03/09/18 11:59:21 PM
#33:


Of course, this happens right after I bought the Classic Voltron '84 lions.
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ss4parrothair
03/10/18 12:01:07 AM
#34:


The one by my house has been closing since end of January. Its sad. My daughters love that store
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WarGreymon77
03/10/18 12:16:56 AM
#35:


What the fuck?! No! This can't be real.
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Questionmarktarius
03/10/18 12:18:19 AM
#36:


WarGreymon77 posted...
What the fuck?! No! This can't be real.

Pfft.
TRU has been on an obvious Wards and Radio Shack trajectory for several years, just slightly slower.

Sears is next.
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WarGreymon77
03/10/18 12:58:49 AM
#37:


First it was the local mini-golf places. Then arcades. Kaybee Toys, Electronics Boutique, Babbage's, layaway, optical drives in computers, and now even Toys R' Us?! Is nothing sacred? Rhetorical question.
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Questionmarktarius
03/10/18 1:02:41 AM
#38:


Kaybee was always kinda crappy, and Babbages & Electronics Boutique (and Software Etc and Funcoland) were eaten by Gamestop.

Incidentally, Gamestop itself is starting to swirl around a Radio Shack deathspiral.
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WarGreymon77
03/10/18 1:28:48 AM
#39:


Thing is, Gamestop is shit compared to the stores it bought. And Kaybee was awesome, as is TRU.
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Questionmarktarius
03/10/18 1:31:19 AM
#40:


WarGreymon77 posted...
Thing is, Gamestop is shit compared to the stores it bought. And Kaybee was awesome, as is TRU.

Kaybee was awesome as hell in the 80s, when they sold imported Japanese stuff - especially toys that eventually became Transformers. The 90s were not nice to Kaybee at all, however.

Now that I think about it, Kaybee may have been one of the earlier Walmart casualties.
Huh.
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jramirez23
03/10/18 1:55:19 AM
#41:


Toys R Us in Spanish is Toisaros.
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RevOn_DX
03/10/18 10:46:20 AM
#42:


Good riddance. Worse place to work for, especially with the way management treated its employees. Glad to see it burn in hell

Only bad news is apparently Best Buy bought alot of its toy stock and thats just odd lol
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Solid Sonic
03/10/18 10:54:06 AM
#43:


RevOn_DX posted...
Good riddance. Worse place to work for, especially with the way management treated its employees. Glad to see it burn in hell

Only bad news is apparently Best Buy bought alot of its toy stock and thats just odd lol

I smell someone who refuses to shop at Amazon.
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RevOn_DX
03/10/18 11:13:53 AM
#44:


Solid Sonic posted...
RevOn_DX posted...
Good riddance. Worse place to work for, especially with the way management treated its employees. Glad to see it burn in hell

Only bad news is apparently Best Buy bought alot of its toy stock and thats just odd lol

I smell someone who refuses to shop at Amazon.

How did you get that from dissing Toys r Us? Dude, I bought my Miku calender from Amazon. I got Shining Resonance Refrain preordered at Amazon. Next time, think before you type chump. Lol jk. No, seriously, how did you come to that conclusion? o.o
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Solid Sonic
03/10/18 11:29:40 AM
#45:


Your disagreement with poor labor practices?
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RevOn_DX
03/10/18 11:36:17 AM
#46:


Solid Sonic posted...
Your disagreement with poor labor practices?

Well, I never worked at an Amazon so I cant talk from my butt. But Toys r Us, yeah burn in hell.
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BlackScythe0
03/10/18 12:22:08 PM
#47:


RevOn_DX posted...
Good riddance. Worse place to work for, especially with the way management treated its employees. Glad to see it burn in hell

Only bad news is apparently Best Buy bought alot of its toy stock and thats just odd lol


Maybe they were trying to get the exclusive pop deals from toys r us?

Not sure what stock you're talking about.
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samuricex
03/10/18 12:40:17 PM
#48:


Has anyone gone to see the sales and are there any good video game sales going on?
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RevOn_DX
03/10/18 1:16:52 PM
#49:


BlackScythe0 posted...
RevOn_DX posted...
Good riddance. Worse place to work for, especially with the way management treated its employees. Glad to see it burn in hell

Only bad news is apparently Best Buy bought alot of its toy stock and thats just odd lol


Maybe they were trying to get the exclusive pop deals from toys r us?

Not sure what stock you're talking about.


Oh. Sorry. During the holidays, Best Buy bought a bunch of stock from companies that didnt want there product at toys r us. It looks like it was a good deal because we're expanding our toy selection. For example, I just set a dedicated lego section in my store. Freaking Legos at a Best Buy! And with Toys r Us dying, Im betting we're gonna get even more toys
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WarGreymon77
03/10/18 1:36:22 PM
#50:


Best Buy has changed. I went there yesterday and they had only a tiny little section for desktop computers. WTF?! But they had candy for some reason.
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