snopes.com  

Go Back   snopes.com > Non-UL Chat > Business Bytes

Reply
 
Thread Tools Display Modes
  #1  
Old 09 March 2018, 06:44 PM
E. Q. Taft's Avatar
E. Q. Taft E. Q. Taft is offline
 
Join Date: 30 July 2003
Location: San Diego, CA
Posts: 14,164
No Toys R Us said to prepare for shutdown of U.S. operations

Toys R Us Inc. is making preparations for a liquidation of its bankrupt U.S. operations after so far failing to find a buyer or reach a debt restructuring deal with lenders, according to people familiar with the matter.

While the situation is still fluid, a shutdown of the U.S. division has become increasingly likely in recent days, said the people, who asked not to be identified because the information is private. Hopes are fading that a buyer will emerge to keep some of the business operating, or that lenders will agree on terms of a debt restructuring, the people said.

https://www.mysanantonio.com/busines...n-12740954.php
Reply With Quote
  #2  
Old 09 March 2018, 06:55 PM
Aud 1 Aud 1 is offline
 
Join Date: 05 October 2005
Location: Missouri
Posts: 7,159
Default

I'm really glad we used those gift cards a few weeks ago.
Reply With Quote
  #3  
Old 09 March 2018, 08:05 PM
E. Q. Taft's Avatar
E. Q. Taft E. Q. Taft is offline
 
Join Date: 30 July 2003
Location: San Diego, CA
Posts: 14,164
Default

...although there might be some good buys at the likely liquidation sales.

I haven't set foot in one in years, but it still makes me a bit sad.
Reply With Quote
  #4  
Old 10 March 2018, 12:49 AM
Seaboe Muffinchucker's Avatar
Seaboe Muffinchucker Seaboe Muffinchucker is offline
 
Join Date: 30 June 2005
Location: Seattle, WA
Posts: 18,496
Glasses

The first time I went into a Toys R Us (probably about 1993 or so), it was great. All sorts of games and toys I thought were interesting, for both adults and children.

By the time my younger nephew was old enough to choose his own birthday present (about 2000), I thought the store had a poor selection with way too much emphasis on toys for the very young (at the expense of toys for older children). There was basically nothing there for an adult.

All of which is to say--this doesn't surprise me in the least.

Seaboe
Reply With Quote
  #5  
Old 10 March 2018, 02:05 AM
GenYus234's Avatar
GenYus234 GenYus234 is offline
 
Join Date: 02 August 2005
Location: Mesa, AZ
Posts: 25,940
Default

Also, at least as far as Lego goes, their prices are consistently about 10% higher than any other store, e or b&m.
Reply With Quote
  #6  
Old 10 March 2018, 06:47 AM
E. Q. Taft's Avatar
E. Q. Taft E. Q. Taft is offline
 
Join Date: 30 July 2003
Location: San Diego, CA
Posts: 14,164
Default

I do recall that it always seemed to me that they were giving too much room to clothes and baby goods as opposed to toys, but then I was generally shopping for myself rather than for kids.

But it's not really a problem with their sales, which are not really bad as far as the retail industry goes (all physical stores are struggling somewhat with electronic competition). As the article notes, they were the subject of a leveraged buyout some years back that left them with an enormous debt load. They've managed to keep up, barely, with their payments, but that's meant delaying any new investment, updating their technology, etc., and it finally became unsustainable.

Still possible that they could pull a last-minute miracle, either with a new buyer or some help from creditors, but it's looking unlikely.

We can't even really blame Donald Trump, though that won't stop me from doing so anyway.
Reply With Quote
  #7  
Old 10 March 2018, 01:23 PM
Richard W's Avatar
Richard W Richard W is offline
 
Join Date: 19 February 2000
Location: High Wycombe, UK
Posts: 26,111
Default

It's odd to me because Toys R Us opened a new branch in the shopping centre in High Wycombe (in the unit that used to be HMV - that's moved to a smaller one rather than closing altogether), very recently. I'm not sure exactly when but I've only noticed it this year.

I did read that in the UK they're trying to keep branches open, and that their smaller in-town shops are doing better than the big out-of-town warehouses, but it seems strange to open a new shop just before going bankrupt. Maybe they were trying a new strategy, or maybe they're hoping to keep this part going.
Reply With Quote
  #8  
Old 10 March 2018, 04:11 PM
RichardM RichardM is offline
 
Join Date: 27 March 2004
Location: Las Cruces, NM
Posts: 4,408
Default

I did the electrical design of several of their stories several years ago.
Reply With Quote
  #9  
Old 10 March 2018, 07:26 PM
erwins's Avatar
erwins erwins is offline
 
Join Date: 04 April 2006
Location: Portland, OR
Posts: 12,103
Default

We did a lot of online shopping that probably would have partly been their business when the ertwins were born (and before). But, we also did buy certain things there because even 2-day Amazon Mom shipping is too long to wait for some things. And some things you want to pick out in person.

I seems surprising that there would be no purchaser, but if there's a lot of debt, maybe that explains it.
Reply With Quote
  #10  
Old 10 March 2018, 09:46 PM
Richard W's Avatar
Richard W Richard W is offline
 
Join Date: 19 February 2000
Location: High Wycombe, UK
Posts: 26,111
Default

Apparently our local one opened back in September - I must have been unobservant before Christmas! Anyway, it's closing as well:

http://www.bucksfreepress.co.uk/news...after_opening/

It lasted longer than that ice-cream parlour, anyway. I hope this isn't the start of another round of high street closures - we've lost some big ones in the last few years.
Reply With Quote
  #11  
Old 12 March 2018, 01:30 PM
Sooeygun Sooeygun is offline
 
Join Date: 30 May 2008
Location: Toronto, ON
Posts: 1,130
Default

https://www.thestar.com/business/201...struggles.html
In Canada, they were making money.
Reply With Quote
  #12  
Old 13 March 2018, 07:47 AM
Dasla's Avatar
Dasla Dasla is offline
 
Join Date: 15 April 2010
Location: Brisbane, Australia
Posts: 3,621
Default

Back in the mid '90's, when they opened one here, I went for a group interview to work in one. I had just graduated Uni and was looking for work, any work. Anyway I didn't get the job, not the type I would say, not a kid person.

I had an appointment out near the shopping centre were it is today and had my lunch near the store. While some part of my brain was telling me Toys "R" Us had come up recently I was mainly thing about that interview 20 plus years ago. Which is how my brain works these days. So what I am saying is that I didn't go in and see how it is going here or what sort of products they have. So I can't add to the conversation. But there was a Babies "R" Us next to it, or in it. Like I said, I didn't go in.
Reply With Quote
  #13  
Old 22 March 2018, 07:34 PM
E. Q. Taft's Avatar
E. Q. Taft E. Q. Taft is offline
 
Join Date: 30 July 2003
Location: San Diego, CA
Posts: 14,164
Default CEO of Bratz dolls maker leads bid to salvage hundreds of U.S. Toys R Us stores

California toy mogul Isaac Larian is leading an effort to save more than half of the 735 domestic Toys R Us Inc. stores that would close under the bankrupt retailer's plan to liquidate.

Larian is majority owner and chief executive of MGA Entertainment Inc., a privately held toy maker based in Van Nuys whose lineup includes Bratz dolls and Little Tikes products, for which Toys R Us is a major customer.

http://www.latimes.com/business/la-f...322-story.html
Reply With Quote
  #14  
Old 23 March 2018, 01:05 AM
Crius of CoH's Avatar
Crius of CoH Crius of CoH is offline
 
Join Date: 13 February 2006
Location: Paragon City (Cranston), RI
Posts: 1,824
Default

Charles Lazarus, founder of Toys R Us, dies at age 94, 1 week after the announcement of the closing of his company.

Story: http://money.cnn.com/2018/03/22/news...ary/index.html
Reply With Quote
  #15  
Old 23 March 2018, 01:18 AM
Richard W's Avatar
Richard W Richard W is offline
 
Join Date: 19 February 2000
Location: High Wycombe, UK
Posts: 26,111
Default

If there's a buyout that saves it, I expect he'll come back to life.
Reply With Quote
  #16  
Old 23 March 2018, 09:02 AM
lord_feldon's Avatar
lord_feldon lord_feldon is offline
 
Join Date: 08 August 2007
Location: Ohio
Posts: 12,387
Default

Quote:
Originally Posted by Sooeygun View Post
The stores in the USA were making money too. It just wasn't enough money to pay off the debt of the investors who bought it in 2005.

Quote:
Toys 'R' Us consistently saw net losses from 2014 to 2017. But in the last three years, those net losses were considerably smaller than its debt payments. In fact, the losses were shrinking amidst a general boom in toy industry sales; by 2017, its losses were all the way down to $36 million.

In other words, if Bain, KKR, and Vornado had never come along, Toys 'R' Us wouldn't be doing stellar, but it probably could've muddled through. As recently as last year, the company still accounted for 20 percent of all U.S. toy sales.
Reply With Quote
  #17  
Old 23 March 2018, 02:53 PM
Alarm's Avatar
Alarm Alarm is offline
 
Join Date: 26 May 2011
Location: Nepean, ON
Posts: 5,657
Default

Quote:
Originally Posted by Richard W View Post
If there's a buyout that saves it, I expect he'll come back to life.
http://www.cbc.ca/news/business/toys...dies-1.4588691
Quote:
Charles P. Lazarus, the World War II veteran who founded Toys "R" Us six decades ago and transformed it into an iconic piece of Americana, died Thursday at age 94, a week after the chain announced it was going out of business in the U.S.
Glad to see I wasn't the only one to make that connection with the last name.
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
PayPal cancels 400-job operations center in North Carolina over LGBTQ discrimination TallGeekyGirl Soapbox Derby 5 05 April 2016 06:05 PM
Prepare to Hang Up the Phone, Forever snopes Techno-Babble 49 01 April 2014 02:05 PM
Prepare to Be Shocked! snopes Business Bytes 16 21 August 2013 11:00 PM
Jet-Pack Boats: The Future of Special Operations? A Turtle Named Mack Techno-Babble 9 21 May 2013 08:04 AM
How to prepare for alien invasion snopes Spook Central 16 28 April 2007 01:58 PM


All times are GMT. The time now is 06:18 PM.


Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2018, vBulletin Solutions, Inc.