Toys R Us debating whether or not it will close all of its US store locations
Thursday, March 8th, 2018 9:34PM CST
Categories: Toy News, Company NewsPosted by: william-james88 Views: 31,470
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This comes to us from the Wall Street Journal which refers to unspecified people in the know.
Just to be very clear, this does not mean that all stores are closing Monday, it just means that the decision to close all stores in the US could be made official Monday. Liquidation would happen soon after. Also, this is just for US operations.
Here are the key parts from the Wall Street Journal Article:
- 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.
- An announcement could come as soon as Monday when the parties are expected to appear at a bankruptcy hearing in Richmond, VA., the people said. How much Toys R Us decides to liquidate will depend on the size of the liquidator bids it receives, the people said.
- The plan to shut down the stores and liquidate the U.S. operations is one of several scenarios in play, one of the people said, and while some lenders are pushing that route, others want to find other options for Toys R Us to continue operations.
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Posted by william-james88 on March 8th, 2018 @ 9:46pm CST
shajaki wrote:Will, is the article accurate that TRU Canada entered bankruptcy last September? I don't recall hearing that!
Yes, it did. But it did so seperately. It was indeed protection from the US going bankrupt since TRU Canada has been lending its surplus money to the US branches.
The US was sinking Canada down with them (which they can, they own it) so when they declared bankruptcy, Canada had to decalre bankruptcy too.
However, I do not think that the US liquidating means canada will have to be liquidated as well. Regardless, TRU Canada is ridiculously profitable due to the meager competition so what i beleive is someone would simply buy the Canadian operations if things got really dire.
Posted by BombshellDaBug on March 8th, 2018 @ 9:50pm CST
Posted by william-james88 on March 8th, 2018 @ 9:52pm CST
BombshellDaBug wrote:Holy S*** this is troubling as all hell. Granted the decision isn't final yet, but it's still really concerning for TRU. One concern of mine is that TRU might be the only option for TF collecting for certain people. I also can't help but wonder what's going to happen to certain exclusives i.e. Studio Series Thundercracker. Are we going to get an alternative outlet for purchasing it, or are we just not going to see it as a result of this?
Thundercacker is already out at TRU, and was the last TRU exclusive.
Posted by TK415 on March 8th, 2018 @ 10:26pm CST
Posted by Logsters65 on March 8th, 2018 @ 10:28pm CST
Posted by Wireless_Phantom on March 8th, 2018 @ 10:44pm CST
Posted by WreckerJack on March 8th, 2018 @ 11:30pm CST
TK415 wrote:how does liquidating stores and inventory help lenders?
IIRC its a way to sell off unused products to get 'liquid funds'. Think of stores like ROSS, TJMaxx and Nordstrom Rack that sell surplus goods. My theory is some of the overstock from TRU may wind up those places. I could be wrong.
Posted by Me Grimlock King on March 9th, 2018 @ 12:04am CST
Posted by Jelze Bunnycat on March 9th, 2018 @ 1:06am CST
WreckerJack wrote:TK415 wrote:how does liquidating stores and inventory help lenders?
IIRC its a way to sell off unused products to get 'liquid funds'. Think of stores like ROSS, TJMaxx and Nordstrom Rack that sell surplus goods. My theory is some of the overstock from TRU may wind up those places. I could be wrong.
Basically anyone who wants to buy those goods is fair game. A step in the bankruptcy trajectory is to asses value of possessions, with movable stock as a primary focus. Once that is sold off either via sales in store or overstock to other companies, the real estate is next, which may take a while longer. It all depends on who shows interest in picking up a particular lot, it's a case by case basis, like one company buys up the lots in a particular city, another buys all the lots on East coast, and so on. I'm seeing it happen a lot back home in the Netherlands, with department stores and supermarkets biting the dust left and right.
Thankfully, the move to close up shop was an anticipated possibility so there are no exclusives in the pipeline: the future Movie MP figures and other normally TRU exclusives have been relegated to other stores. Anybody remember KB Toys with their exclusives close to bankruptcy in 2005? Nightmarish.
Posted by leokearon on March 9th, 2018 @ 4:36am CST
Posted by Rated X on March 9th, 2018 @ 5:01am CST
Posted by dragons on March 9th, 2018 @ 6:02am CST
Logsters65 wrote:If anyone has any news or theories on what might happen to the Canadian stores please let me know, I really hope they don't close down because it's my main supplier for transformers
Its main supplier for any toy there selection is bigger than walmart they even sell some Japanese stuff dbz naruto and other anime stuff
Posted by Emerje on March 9th, 2018 @ 6:13am CST
I don't have much in the way of childhood nostalgia going there and as an adult I've only known them as a huge headache so I really can't say I'm going to miss them. I'd go as far as to say I'm glad they're going away, now I don't have to drive 75 miles in hopes of finding an exclusive.
Emerje
Posted by Acesmcgee on March 9th, 2018 @ 6:33am CST
It's so fun to see kids eyes afire with awe, want, desire of the toys as you walk around, even if all your doing is picking up someone else's birthday gift. I'm laughing to myself remembering my wife admonishing me as well as the kids "We are only here to get a birthday gift, don't go giving me puppy eyes and asking me for anything, that goes double for you Mr. Walsh" So yeah, if it goes, I'll miss it for a couple of reasons, but nothing that won't live in my memories, until senility sets in at least.
Posted by griftimus prime on March 9th, 2018 @ 6:52am CST
Posted by That_Guy on March 9th, 2018 @ 7:14am CST
Posted by Cyber Bishop on March 9th, 2018 @ 7:28am CST
Posted by Kyleor on March 9th, 2018 @ 8:17am CST
I may have to shift to buying mostly online since I can count the number of different Transformers my local Wal-marts usually have in stock on one hand, and my local Targets are usually very slow to stock/restock, when the Transformers section isn't overtaken by 'IP of the month' toy overflows.
Posted by ScottyP on March 9th, 2018 @ 8:20am CST
Posted by Tyrannacon on March 9th, 2018 @ 8:36am CST
Posted by reluctantyouth on March 9th, 2018 @ 8:38am CST
Posted by Flashwave on March 9th, 2018 @ 8:42am CST
its about cutting losses. Close the store and uTK415 wrote:how does liquidating stores and inventory help lenders? Aren't the locations leased? Are the stores locations owned? Selling real estate would bring in money. Thanks for any answers.
You lose payroll costs and and most of your ovwrhead until you can sell the buildings. Liquidate the product, and at the very least you can pay back to some of the creditors and not be hemmoraging on interest.
if by "stop" you mean "We won't get many of the cool figures that have come out over the years at all now", then yes. But not havong a Stpre for Exclusices doesnt mean they can magically stuff it into the main line.leokearon wrote:Kind of stupid of Hasbro to give a store in financial trouble and now could be closing a lot of exclusives. Maybe this might be a lesson and finally stop store exclusives
Posted by Shiroi Haze on March 9th, 2018 @ 11:31am CST
Posted by leokearon on March 9th, 2018 @ 11:34am CST
if by "stop" you mean "We won't get many of the cool figures that have come out over the years at all now", then yes. But not havong a Stpre for Exclusices doesnt mean they can magically stuff it into the main line.[/quote]leokearon wrote:Kind of stupid of Hasbro to give a store in financial trouble and now could be closing a lot of exclusives. Maybe this might be a lesson and finally stop store exclusives
Well it doesn't matter if they don't magically appear in the main line (which they should) since not everyone can get them in the first place.
Posted by NTESHFT on March 9th, 2018 @ 1:15pm CST
Posted by william-james88 on March 9th, 2018 @ 1:20pm CST
NTESHFT wrote:What about the bigger figures like titan clas (Predaking)? The only place I have seen those class figures is TRU. I don't know the reason why, but my local Wal-Mart's or Targets stock those. I didn't think those guys were actually "exclusives"....
They are not. You could order them from walmart.com or amazon.com with free shipping.
https://www.walmart.com/ip/Transformers ... n/55589165?wmlspartner=FYAGeMjDX6c&=&affs=p&wid=5b6b4213e4b0bcb699adeb9f&u1=&oid=223073.10006940&sourceid=37141976172661509211&affillinktype=3&veh=aff
Posted by Megatron Wolf on March 9th, 2018 @ 2:28pm CST
Posted by Ultra Markus on March 9th, 2018 @ 7:15pm CST
Posted by featofstrength on March 9th, 2018 @ 7:19pm CST
Um...Chuck E. Cheese is dead?
Posted by lakebot on March 10th, 2018 @ 9:45am CST
william-james88 wrote:BombshellDaBug wrote:Holy S*** this is troubling as all hell. Granted the decision isn't final yet, but it's still really concerning for TRU. One concern of mine is that TRU might be the only option for TF collecting for certain people. I also can't help but wonder what's going to happen to certain exclusives i.e. Studio Series Thundercracker. Are we going to get an alternative outlet for purchasing it, or are we just not going to see it as a result of this?
Thundercacker is already out at TRU, and was the last TRU exclusive.
Not quite available though. It being “out” and “available” are two different things. Especially if your store is really lazy about restocking. A lot of people may never see that thing.
Posted by william-james88 on March 10th, 2018 @ 10:07am CST
lakebot wrote:william-james88 wrote:BombshellDaBug wrote:Holy S*** this is troubling as all hell. Granted the decision isn't final yet, but it's still really concerning for TRU. One concern of mine is that TRU might be the only option for TF collecting for certain people. I also can't help but wonder what's going to happen to certain exclusives i.e. Studio Series Thundercracker. Are we going to get an alternative outlet for purchasing it, or are we just not going to see it as a result of this?
Thundercacker is already out at TRU, and was the last TRU exclusive.
Not quite available though. It being “out” and “available” are two different things. Especially if your store is really lazy about restocking. A lot of people may never see that thing.
So what? Even in normal times, some people migjt not see toysrus exclusives at their specific toys are us.
The point is this exclusive has been shipped to the stores. There is no going back on it and you will not see it at another outlet aside from a discount outlet ifTRU dumps their stock.
Posted by RK_Striker_JK_5 on March 10th, 2018 @ 3:07pm CST
Posted by WreckerJack on March 11th, 2018 @ 1:14pm CDT
Posted by REX-203 on March 12th, 2018 @ 8:06am CDT
Cyber Bishop wrote:I have shopped at TRU for years, I remember the days when they had more chains like Lionel Playworld and children's Palace (non mall stores) and prices were a lot better. I do have fond memories of buying some TF's from TRU like the original Fort Max and Scorponok. Unfortunately recently If I have purchased more than 3 items from TRU a year unlike when I used to get at least 50 - 75% of my toys from them as they are too damn expensive now, and I can get the toys other places. If I visit the only local store once a month I am lucky as lately I have gone 2 - 3 months without stepping foot in one of their stores.
Hey buddy, I will never forget the first time I met you at the TRU on Vets. You had hid an Armada Tidalwave for me, and I went there to pick it up. I saw you there and recognized you from pics you had posted here in the Energon Pub. So glad to still call you a friend after all this time. It's hard to believe that was, what 15 or 16 years ago?
I have very fond and vivid memories of Children's Palace on Vets and Lionel Playworld on Airline. It's funny, I don't remember ever going to TRU until the later '80s after the NES came out and going there to look for TMNT with my brother. Do you know what year it opened here?
I know it looks bleak, but I do really hope something can be worked out. Fat chance, I realize, but I just don't want to see it go...
Posted by Ironhidensh on March 12th, 2018 @ 8:06am CDT
Over priced, and rarely in stock, the current version will not be missed.
Posted by ScottyP on March 12th, 2018 @ 9:59am CDT
I had started to kind of enjoy going there again when they began stocking fun Gundam stuff from Bluefin. Then they started marking those up to the point where different figures in the same series, that were the same size, but different assortments would vary in price. Happened with Converge, Universal Unit, and even the little two minute kits. Hell I can go to one up the road and spend anywhere from $6-$11 on one Converge figure. It's this huge red flag of a retailer being run by people that don't understand retailing.Ironhidensh wrote:The Toys R Us of my childhood has been gone for a couple of decades now.
Over priced, and rarely in stock, the current version will not be missed.
In short, I agree
Posted by william-james88 on March 12th, 2018 @ 8:45pm CDT
NOTICE OF ADJOURNMENT OF OMNIBUS HEARING SCHEDULED FOR MARCH 12, 2018 AT 2:00 P.M. PLEASE TAKE NOTICE THAT all matters scheduled to be heard at the omnibus hearing set for March 12, 2018 at 2:00 p.m. (prevailing Eastern Time) are being adjourned to March 15, 2018 at 2:00 p.m. (prevailing Eastern Time) and that all matters set for the omnibus hearing on March 12, 2018 have been removed from the Court’s docket.
Many Canadians are concerned since unlike the experiences reported in the US, Toysrus in Canada has been a true haven for collectors. They would pick up any exclusive from retailers that were US specific (BBTS, Target, ect) and thanks to their pricing policy and discounts, it is currently the best place to buy Transformers in the country. So of course, Canadians are very worried with what will happen if the US parent company folds. Well, we have word from the VP of marketing of the subsidiary, Clint Gaudry:
Clint Gaudry wrote:Our business in Canada is operating as usual. We remain committed to providing customers with great service and the best assortment of merchandise in the toy and baby categories. We continue to serve our customers and honour all our customer policies and programs like Baby Registry, Gift Cards and R Club loyalty.
So that's good news for Toysrus Canada but this article from the Financial Post, which looks into the future of Toysrus Canada, and it seems there will definitely be a change regardless. For instance, if Toysrus Canada survives and continues on its own, not being part of a bigger corporation means prices are bound to go up to offset costs of no longer buying as big an order from suppliers.
Any prospective buyer of Toys “R” Us Canada would have to work with skittish vendors and a higher cost base. “Things would change without the U.S. business to support the Canadian unit, anything from marketing costs to merchandising costs,” without the economies of scale of a large bulk-buying parent Minakakis said.
Posted by Ig89ninja on March 12th, 2018 @ 9:12pm CDT
Posted by william-james88 on March 12th, 2018 @ 9:13pm CDT
Ig89ninja wrote:wait, isn't wednesday the 14th?
its thursday, I fixed it
Posted by Aimless Misfire on March 12th, 2018 @ 11:53pm CDT
My local Toys R Us never has anything. I leave empty handed 99% of the time. And their website is just as bad. And back in the 80's Toys R Us hardly ever had anything, Child World was my store. Child World was always better. I still miss Child World & Kay Bee but I won't miss Toys Aren't Us.
Posted by -Kanrabat- on March 13th, 2018 @ 4:43am CDT
If TrU is gone from Canada, all that will remain is Walmart. And Walmart suck ass for toys. There's never anything in store and their websites is now infected with Amazon Style vendors, their listings peppered through Walmart's. It's garbage.
Posted by Cyber Bishop on March 13th, 2018 @ 7:38am CDT
Aimless Misfire wrote:It's an extremely slow gradual decline that we've been watching since '88. Everything started going down the toilet around '88='92. All the toy lines died. The cartoons died. The stores started dying off. The economy went to hell. Music went to **** when rap came on the scene. And because of cell phones & other electronic gadgets humans don't even know how to socially interact with each other anymore. You can't stop progress! lol Let it burn! Good riddance to a rotten world.
My local Toys R Us never has anything. I leave empty handed 99% of the time. And their website is just as bad. And back in the 80's Toys R Us hardly ever had anything, Child World was my store. Child World was always better. I still miss Child World & Kay Bee but I won't miss Toys Aren't Us.
In the 90's TRU was booming, TF generation 2, The Star Wars POTF2 line came out, Beast Wars and all kinds of other toy lines were extremely popular. Every Saturday and Sunday mornings at local TRU's collectors met in droves to see what they received the night before. The downfall shift I and others I know noticed was when Kaybee toys closed down, TRU became a monopoly and then decided to jack their prices up way more than other stores. I know TRU employees that state that they feel the prices are non competitive and this is one of their downfalls. When competition goes away and one store becomes a monopoly that means prices can go up. I remember the golden days of multiple toys stores,'Lionel Playworld, Children's Palace/Child World, Toys By Roy (later merged with Kaybee) you had options but now you only have one toy specific store, TRU, they got greedy and are now paying the price for greed.
Posted by Kyleor on March 13th, 2018 @ 10:01am CDT
Cyber Bishop wrote:Aimless Misfire wrote:It's an extremely slow gradual decline that we've been watching since '88. Everything started going down the toilet around '88='92. All the toy lines died. The cartoons died. The stores started dying off. The economy went to hell. Music went to **** when rap came on the scene. And because of cell phones & other electronic gadgets humans don't even know how to socially interact with each other anymore. You can't stop progress! lol Let it burn! Good riddance to a rotten world.
My local Toys R Us never has anything. I leave empty handed 99% of the time. And their website is just as bad. And back in the 80's Toys R Us hardly ever had anything, Child World was my store. Child World was always better. I still miss Child World & Kay Bee but I won't miss Toys Aren't Us.
In the 90's TRU was booming, TF generation 2, The Star Wars POTF2 line came out, Beast Wars and all kinds of other toy lines were extremely popular. Every Saturday and Sunday mornings at local TRU's collectors met in droves to see what they received the night before. The downfall shift I and others I know noticed was when Kaybee toys closed down, TRU became a monopoly and then decided to jack their prices up way more than other stores. I know TRU employees that state that they feel the prices are non competitive and this is one of their downfalls. When competition goes away and one store becomes a monopoly that means prices can go up. I remember the golden days of multiple toys stores,'Lionel Playworld, Children's Palace/Child World, Toys By Roy (later merged with Kaybee) you had options but now you only have one toy specific store, TRU, they got greedy and are now paying the price for greed.
Circuit City did the whole too greedy thing too. It seems like once corporate gets the idea that they're the 'big boys' and 'too big to fail' and 'our customers will pay whatever we say because we're *Company*' it infects most of the company and it's downhill from there.
Posted by tmthor on March 13th, 2018 @ 10:08am CDT
Posted by Cyber Bishop on March 13th, 2018 @ 4:00pm CDT
Kyleor wrote:Circuit City did the whole too greedy thing too. It seems like once corporate gets the idea that they're the 'big boys' and 'too big to fail' and 'our customers will pay whatever we say because we're *Company*' it infects most of the company and it's downhill from there.
Pretty much.
Posted by william-james88 on March 14th, 2018 @ 8:56am CDT
We know the US is getting ready for a liquidation fo their own but no official decision has been made yet. You can click here for the latest news on the US and Canadian front.
Here are the key points from the BBC article:
All Toys R Us stores in the UK are expected to close in the next six weeks following the chain's collapse into administration.
The BBC understands that attempts to find a buyer for the US retailer's 100 stores in the UK have failed.
Twenty five stores have either closed in recent days or are due to shut by Thursday.
The collapse will put more than 3,000 people out of work as a dismal period for the retail sector continues.
Posted by ZeroWolf on March 14th, 2018 @ 9:13am CDT
Posted by Big Grim on March 14th, 2018 @ 1:42pm CDT
Posted by Jelze Bunnycat on March 14th, 2018 @ 2:51pm CDT
ZeroWolf wrote:I'm going to be heading to my local either today or tomorrow. Not expecting to find anything great though. Still feels odd that they'll all be gone.
Not quite all gone I must add. Toys 'R Us has a quite a few stores in Asia, especially in Japan and they seem to be doing more than fine right now. I wonder what would happen to those stores.
Posted by Ironhidensh on March 14th, 2018 @ 5:45pm CDT