Gaming legend Toys 'R' Us files for bankruptcy

Robyn Ryan
September 21, 2017

The largest toy store chain in the U.S has filed for bankruptcy protection Monday, just as they are gearing up for the holiday shopping season, which accounts for most of their sales.

Toys "R" Us will also offer shoppers more stores that combine its flagship brand for kids of all ages with the infant- and toddler-focused Babies "R" Us, Brandon said.

Following some speculation about its financial woes, Toys R Us has officially filed for Chapter 11 Bankruptcy.

Toys R Us was taken private in 2005, acquired by the investment firms Bain Capital, KKR & Co. and Vornado Realty Trust in a deal financed mostly with debt.

With the possible business restructuring in mind, the bankruptcy filing may have placed at around 64,000 positions in the company at risk of job cuts, Daily Express reported.

The company's Canadian unit intends to seek protection in parallel proceedings, it said in a statement.

The big question as we head towards the end of the year and the retail sector's busiest time of the year is whether the collapse of Toys "R" Us is a harbinger of further retail weakness, or merely a result of a legacy of bad management in the USA, and that underneath there is a decent retail business underneath. Does Bankruptcy Mean Going Out of Business? appeared first on InvestorPlace. Either way, for '90s gamers, the company's Chapter 11 announcement is concerning news.

Toys " R " Us has begun Tuesday, a procedure for protection from its creditors in Canada, less than 24 hours after having done the same in the United States. Given the choice of buying a train set online or in a store, particularly when a toy shop can transform even the calmest child into an insatiable lunatic, many parents opt to buy online. It hasn't worked. Neither have its big bets on licensed toys from movies like "Star Wars" and "Lego", as the Wall Street Journal noted.

By the time Lazarus retired in 1994, the company had grown to more than 1,000 stores.

Toys R Us said court-supervised proceedings will help restructure the outstanding debt and set the stage for long-term growth. Toys R Us is also where I played Resident Evil on the PlayStation for the first time too. Or Toys "R" Us may soon refocus to stay on top of the latest gaming releases.

"Oh my God, they are very important, and people don't understand", Isaac Larian, founder and chief executive officer of MGA, said of the toy chain. Among them were Perfumania Inc, apparel chains rue21 Inc and Gymboree Corp, discount shoe chain Payless Holdings LLC and designer clothing chain BCBG Max Azria Global Holdings LLC. Toys R Us suppliers started stepping back a little too late - reminding suppliers everywhere that paying attention to your buyer's financial health is as important as managing your own. US toy sales rose 6 percent last year on top of a 7 percent increase in the prior year, according to NPD Group Inc., a market research firm.

Other reports by VideoGamingPros

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