Bankrupt Toys R Us Weighs Closing at Least 100 Stores

[n2doc]

Toys “R” Us Inc., which filed for bankruptcy in September, is considering closing at least 100 U.S. stores in the face of weak holiday sales, according to people with knowledge of the situation.

U.S. sales have declined about 15 percent this Christmas-shopping season from a year earlier, according to people recently briefed on the matter, who asked not to be identified because the information isn’t public. The number of closed stores could reach approximately 200, one of the people said, but no decision has been made.

“Final decisions about our real estate portfolio will be done only after careful consideration about the best interests of our business,” said spokeswoman Amy von Walter. “Any speculation on that figure is premature and likely to be inaccurate.”

The Wayne, New Jersey-based company operated 879 U.S. stores as of the end of January, according to its last annual report.

more
https://www.bloomberg.com/news/articles/2017-12-18/bankrupt-toys-r-us-is-said-to-mull-closing-at-least-100-stores

[Moostache]

1. And the retail sector continues to disappear

So, we have lost textiles, manufacturing, small scale agriculture and now retail sales....add to this the loss of net neutrality and just wtf are people going to do to make a living 20 years from now???

I am terrified for my children and for the coming generations. The economy is gone, the environment is trashed and there is no one serious about fixing any of it in charge.

This has a very 1930's vibe to it...and what followed was not good for anyone. ..

[Proud Liberal Dem]

2. Sort of amazing that they are bankrupt/closing stores

Lots of shoppers buying stuff there at any given time whenever I'm at one of their stores. Where else are people buying toys?

[Wounded Bear]

3. Online...

[Egnever]

6. I think their inventory is horrible.

Every time I go in the selection is a majority just cheep branded crap. Very little innovative or fun. If you are looking for a gift that actually shows you think about the kid you are giving it to I think you will find it hard to find in a toys r us these days.

When you can just as easily go to say...


https://www.vat19.com/

And find all kinds of unique stuff why bother with the latest marvel superhero action figure?

I don't think it is yet too late for them they could rethink their stores inventories but if they don't I don't see how they continue to make it.

[Codeine]

8. Amazon, of course.

I'll admit I'm part the problem; at least 80% of our Christmas shopping, and all of the toys, happened on Amazon.

But to be fair, none of it would have happened at ToysRUs regardless -- I've always hated that place, especially during the holidays. Before I went mostly online I used to do all the toy shopping at Target, and I'll be there tonight getting stocking stuffers and last-minute additions.

[CanonRay]

4. My first real job, 1967, $1.60/hour

[Chakaconcarne]

5. .

while Xmas shopping in my city, I have noticed big retail considerably scaling back inventory with fewer customers. small, independent shops...not so much and they were usually packed with people... one of those "socialist", "liberal" cities however.

somewhat encouraging.

[PoindexterOglethorpe]

7. That's too bad.

When my kids were little I enjoyed going there. I'd take them along with me to see what toys they liked, and then go back later to buy. This was before on-line shopping. Oh, and by letting them look at and play a bit with the toys without going home with one, they didn't expect to get something every time they went to the store.

[shenmue]

9. Sad

[OhioBlue]

10. This is Mitt Romney's fault

okay... not directly but the problems that TRU is facing is in large part due to Bain Capital, et al's over leveraged buyout in 2005. TRU has to service $400 million in debt annually as a result. Management reports that the debt burden has kept them from making the investments needed to adapt.

https://www.forbes.com/sites/nathanvardi/2017/09/19/the-big-investment-firms-that-lost-1-3-billion-on-the-toys-r-us-bankruptcy/#1a9b52d6308f

Notice how the investment firms have collected $128 million in advisory fees from TRU