So... is TRU USA the only one in trouble then?TF-fan kev777 wrote:shajaki wrote:There's 3 TRU's in my city, and none of them look like thatIg89ninja wrote:that figure variety!
Why cant the US have that variety!?!
This makes me wonder... could TRU USA disappear while TRU Canada remains? And how are other TRU's fairing? I don't even know how many countries they're in, but I know they're in Japan...
I've been to TRU's in Malaysia, Korea, Germany, UAE-Dubai as well as Japan and Canada (Yeah, I travel for work, a nice perk for hunting TF's. It will be interesting to see how the TRU's in other countries fare.
shajaki wrote:So... is TRU USA the only one in trouble then?TF-fan kev777 wrote:shajaki wrote:There's 3 TRU's in my city, and none of them look like thatIg89ninja wrote:that figure variety!
Why cant the US have that variety!?!
This makes me wonder... could TRU USA disappear while TRU Canada remains? And how are other TRU's fairing? I don't even know how many countries they're in, but I know they're in Japan...
I've been to TRU's in Malaysia, Korea, Germany, UAE-Dubai as well as Japan and Canada (Yeah, I travel for work, a nice perk for hunting TF's. It will be interesting to see how the TRU's in other countries fare.
william-james88 wrote:While it came to no one's shock that Toysrus was close to bankruptcy in the US, due to all the debt woes since the early 00's, Canadians were left puzzled by Toysrus Canada being the only subsidiary to also file for bankruptcy protection. The confusion came from the fact that Toysrus Canada was known to be autonomous from its parent company, along with having less distribution woes, only 1 major competitor, along with lots of stock and product turnaround making it a haven for any toy enthusiast (all of these later attributes are mainly due to the market only being one tenth the size of the US market, and smaller markets are easier to manage).
Well, an article from the Financial Post confirms how healthy Toysrus Canada is.The profitable Toys Canada “operates as a relatively autonomous business unit and has achieved strong financial and operational performance in recent years,” the company said in court filings. It is cash-flow positive, has had compounded annual revenue growth of 5 per cent in the past three years and has almost doubled net earnings in that time, the filings said, and it wants to keep all of its stores open and operating.
However, and here is the kicker, the article also confirms how it is linked to its US parent:Indeed, the Canadian unit has been sending surplus cash from its operations to support its U.S. parent’s cash flow needs, making $101 million in unsecured inter-company loans to the troubled U.S. division since 2016.
So yes, while Toysrus Canada has been doing so well that it has surplus, this $101M loan is unsecured and due to Toysrus declaring bankruptcy, there is no indication that the Canadian operations will ever see that money again. Just to give any reader an idea of how massive this amount is for Toysrus Canada, this $101M unsecured loan is a quarter the size of the $400M debt coming to term soon for TRU USA which caused the later to file for Chapter 11. And this massive $101M amount was given from a subsidiary that only has 10% of the market the US has. This explains how a company which would have been autonomous is instead very much linked financially and how Toysrus going down is dragging the subsidiary down with it.
If you are interested in legal talk, the full article has you covered and you can find it here.
Ig89ninja wrote:that figure variety!
Why cant the US have that variety!?!
Rodimus Prime wrote:You can't make me disappear. I am not feet.
OptimalOptimus2 wrote:Ig89ninja wrote:that figure variety!
Why cant the US have that variety!?!
I the future generations of kids in the United States are losing interests in toys. But what isn't losing profits are electronics. On multiple occurrences, I see parents giving their toddlers tablets and cellphones so they can watch YouTube or play games. These toddlers give so much attention to electronics, that they will lay down in the middle of the floor watching videos or playing games and it's up to you, the pedestrian to walk around them. So the most playful stimulus toddlers are now having is playing with electronics. This desire only increases as they get older because technology gives the most escape from reality than a plastic doll, a die cast car, or a fuzzy teddy bear.
So I think the biggest reason Toysrus and the toy aisles of Target, Walmart, Kmart, etc. are diminishing in the U.S. is due to consumers (children) lower demand for toys and higher demands for electronics and the latest technology.
OptimalOptimus2 wrote:Ig89ninja wrote:that figure variety!
Why cant the US have that variety!?!
I the future generations of kids in the United States are losing interests in toys. But what isn't losing profits are electronics. On multiple occurrences, I see parents giving their toddlers tablets and cellphones so they can watch YouTube or play games. These toddlers give so much attention to electronics, that they will lay down in the middle of the floor watching videos or playing games and it's up to you, the pedestrian to walk around them. So the most playful stimulus toddlers are now having is playing with electronics. This desire only increases as they get older because technology gives the most escape from reality than a plastic doll, a die cast car, or a fuzzy teddy bear.
So I think the biggest reason Toysrus and the toy aisles of Target, Walmart, Kmart, etc. are diminishing in the U.S. is due to consumers (children) lower demand for toys and higher demands for electronics and the latest technology.
shajaki wrote:So... is TRU USA the only one in trouble then?TF-fan kev777 wrote:shajaki wrote:There's 3 TRU's in my city, and none of them look like thatIg89ninja wrote:that figure variety!
Why cant the US have that variety!?!
This makes me wonder... could TRU USA disappear while TRU Canada remains? And how are other TRU's fairing? I don't even know how many countries they're in, but I know they're in Japan...
I've been to TRU's in Malaysia, Korea, Germany, UAE-Dubai as well as Japan and Canada (Yeah, I travel for work, a nice perk for hunting TF's. It will be interesting to see how the TRU's in other countries fare.
That's F***ed. And incredibly depressing.william-james88 wrote:After reading the article I newsed, it seems Canada is the one that is ultra ****. TRU USA wants to stay alive, at least long enough that the investors can flip it or sell off its debt. But to do that, they are sqweezing the still profitable TRU Canada dry. I didnt want to write it in case I misinterpreted (and thus left it to just quoting the expert) but if I read that article correctly it seems Toysrus corporate is making TRU canada take out loans they dont need (From USA banks, no less) to then loan over to the US business because the US needs it. So they are inundating TRU Canada with debt that TRU Canada because they themselves are not able to get more. Other TRUs are not touched right now aside from TRU corporate and TRU Canada. And if anyone goes down, it seems it will be TRU Canada, being sacrificed for the sake of taking all they can from it to make TRU USA survive. We are so ****.
Decepticon Stryker wrote:*Looks at news thumbnail*
...
*Looks at their local TRU shelf*
Why is it that all the stores that sell Transformers near me have such a poor selection? I really hope they'll be able to pull $400 million though. TRU is one of my favorite stores. Looks like I'll need to increase my number of visits.
Concept wrote:Didn't know the Canadian TRU was so profitable...we rarely see some of what is offered in the US.
shajaki wrote:I was hoping for some comments about the relation of TRU USA and Canada. It was rather simplistic.
WreckerJack wrote:shajaki wrote:I was hoping for some comments about the relation of TRU USA and Canada. It was rather simplistic.
I have been wondering that too, I know it's harder to get toys online in Canada. Even tho I live in the states I am concerned for my Canadian pals. Wish I knew more about how that all works.
Sunburnninja wrote:Im pretty sure their prices are taking part in this too, not just TRU
Nightbeat339 wrote:Makes sense. My local TRU only has TLK wave 1, a couple of Triggerhappys and Twinfernos, and some random RiD figures. I've been waiting for them to get the latest waves of Titans Return for months now.
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