Breaking News- Toys R US Stores Declare Bankruptcy!
For those of you who have not heard, for the week or so word has been spread around that the Toy Mogul "Toys R Us" was considering filing for bankruptcy in light of the $5 million in debt it faces in the upcoming years. This news caused everyone to speculate like crazy, and forced the stock of toy manufacturers such as Hasbro, Jakks and Mattel to drop as much as 6%.
Just this last Monday, however, Toys R Us did indeed file for bankruptcy in a tactical move designed to relieve the toy supplier of its debt while preventing it from going under completely. Through commitments from lenders such as an as of yet unnamed JPMorgan-led syndicate, Toys R Us plans to run a risky gambit to keep its doors open.
There is doubts, however, at how effective these measures will be. Some look at the fact that the company has been in serious overwhelming debt since 2015 a sign that the toy retailer's days are numbered. Others argue that in order to launch any successful toy merchandise for TV or Hollywood, Toys R Us is not just a desired outlet, it is a necessary one. Others argue what has been considered a merchandising showroom for mega brands like LEGO and Hasbro, and a launching platform for a number of toy lines tied to major Disney, WB and Marvel franchises is no longer needed in a world where Amazon leads the market in toy sales.
For now, the outcome remains to be seen, especially with the holiday season coming up. The Holidays provide the biggest sales period of the year for Toys R Us, and will provide a chance for the retailer to catch up some. So far the company says only its US stores are effected, and the overseas stores (approx. 225 stores) will be unharmed by the move.
Time only tells if Toys R Us will be able to pull a Macy's and pull through this without having to shut their doors. Until then, we all can only watch and wait with baited breath.
Just this last Monday, however, Toys R Us did indeed file for bankruptcy in a tactical move designed to relieve the toy supplier of its debt while preventing it from going under completely. Through commitments from lenders such as an as of yet unnamed JPMorgan-led syndicate, Toys R Us plans to run a risky gambit to keep its doors open.
There is doubts, however, at how effective these measures will be. Some look at the fact that the company has been in serious overwhelming debt since 2015 a sign that the toy retailer's days are numbered. Others argue that in order to launch any successful toy merchandise for TV or Hollywood, Toys R Us is not just a desired outlet, it is a necessary one. Others argue what has been considered a merchandising showroom for mega brands like LEGO and Hasbro, and a launching platform for a number of toy lines tied to major Disney, WB and Marvel franchises is no longer needed in a world where Amazon leads the market in toy sales.
For now, the outcome remains to be seen, especially with the holiday season coming up. The Holidays provide the biggest sales period of the year for Toys R Us, and will provide a chance for the retailer to catch up some. So far the company says only its US stores are effected, and the overseas stores (approx. 225 stores) will be unharmed by the move.
Time only tells if Toys R Us will be able to pull a Macy's and pull through this without having to shut their doors. Until then, we all can only watch and wait with baited breath.
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