Toys 'R' Us files for bankruptcy protection in U.S.; plans to do same in Canada

[fivethej]

The last real toy store left. No surprise with on-line shopping taking over.

 

R.I.P. Geoffrey

 

 

 

http://www.ctvnews.ca/business/toys-r-us-files-for-bankruptcy-protection-in-u-s-plans-to-do-same-in-canada-1.3595722

 

Quote

TORONTO - Toys 'R' Us has filed for bankruptcy protection in the United States and says it intends to follow suit in Canada. The company filed Chapter 11 documents late Monday in U.S. Bankruptcy Court in Richmond, Virginia and says its Canadian subsidiary plans to seek protection in parallel proceedings under the Companies' Creditors Arrangement Act in the Ontario Superior Court of Justice. The chain also said it had secured US$3 billion in financing to stay open while it restructures its outstanding debt and establishes a sustainable capital structure to invest in long-term growth.

 

Toys 'R' Us says the "vast majority" of its approximately 1,600 Toys 'R' Us and Babies-R-Us stores around the world and its web portals continue to operate as usual. The company adds that it is committed to working with its vendors to ensure inventory levels are maintained and products continue to be delivered. The company says operations outside of Canada and the U.S., including some 255 stores in Asia, are separate entities and are not part of the Chapter 11 filing and CCAA proceedings.

 

"Today marks the dawn of a new era at Toys 'R' Us where we expect that the financial constraints that have held us back will be addressed in a lasting and effective way," said chairman and CEO Dave Brandonin a statement. "Together with our investors, our objective is to work with our debt holders and other creditors to restructure the $5 billion of long-term debt on our balance sheet." Toys 'R' Us is headquartered in Wayne, N.J., and has nearly 65,000 employees worldwide.

 

[D-Money]

As a parent, totally expected. Prices too high, and simply far too much inventory. But when it comes to finding certain items or services (baby gift registry), often the only real game in town.

 

Too many of them as well. There's 3 here in Calgary, where 2 or even just 1 would suffice. Often they're mostly empty, and it can be difficult to get assistance - even in the baby registration area (which should be a cash cow for them). Less stores that provided better service would be preferable, and probably would end up with similar total sales.

 

[nux4lyfe]

Death of retail continues...

[Violator]

2 hours ago, D-Money said:

As a parent, totally expected. Prices too high, and simply far too much inventory. But when it comes to finding certain items or services (baby gift registry), often the only real game in town.

 

Too many of them as well. There's 3 here in Calgary, where 2 or even just 1 would suffice. Often they're mostly empty, and it can be difficult to get assistance - even in the baby registration area (which should be a cash cow for them). Less stores that provided better service would be preferable, and probably would end up with similar total sales.

 

The one on macleod trail over by me is super busy all the time and in the next couple months its gonna get worse.

 

This is the slow decline of retail toy sales though even going into walmart theu have half of what they used to have.

 

Really miss toy traders in langley that is the best place for toys.

[Ghostsof1915]

What Granville Island Toy Company lacks in size, they have good selection and decent prices. The staff is friendly. And I can always find for the varmints in my family (My niece's term, not mine) something cool for birthdays/Christmas. There's also Kaboodles Toy Stores. Once again smaller store, great selection, great staff. 

 

I've been to a Toys R' Us once for my nephew, never been back since. Toys N' Wheels I was raised on. I survived when that chain went out of business. 

You can do well in retail, if you know your market, and you specialize. In Retail, your staff will make or break you. 

 

 

 

 

[D-Money]

21 minutes ago, Violator said:

The one on macleod trail over by me is super busy all the time and in the next couple months its gonna get worse.

 

This is the slow decline of retail toy sales though even going into walmart theu have half of what they used to have.

I suspect when they restructure they will close the Sunridge store. It's the oldest, most run-down, and the least busy (from what I've seen). That will leave them with one at each end of the city.

 

22 minutes ago, Ghostsof1915 said:

What Granville Island Toy Company lacks in size, they have good selection and decent prices. The staff is friendly. And I can always find for the varmints in my family (My niece's term, not mine) something cool for birthdays/Christmas. There's also Kaboodles Toy Stores. Once again smaller store, great selection, great staff. 

 

I've been to a Toys R' Us once for my nephew, never been back since. Toys N' Wheels I was raised on. I survived when that chain went out of business. 

You can do well in retail, if you know your market, and you specialize. In Retail, your staff will make or break you. 

This has never been more true. Before, if you wanted a specific item, a big-box store might be the only option. But now with online selection (and often pricing) trumping anything that a physical store can offer, they need to provide something that people can't get online.

 

Toys 'R Us has 70 stores in Canada, including 6 in the Lower Mainland alone (according to Wikipedia, they have 82 including the standalone Babies 'R Us). If they close around 30-40% of them, but retain all of their best staff and reassign them to provide better service at the remaining locations, they should be able to right the ship.

 

They should market the remaining locations as destination shopping. Having multiple locations in one geographic area used to be more impactful. It brought more business from customers who didn't want to travel far for shopping. But for those people, with that motivation, how can you compete with the convenience of online? However, if you need to see the items, and/or need some assistance, travelling an extra 10-15 minutes to get to where that is offered is not much of a concern.

[SabreFan1]

Just the beginning of a long slow death.  They'll keep contracting for another 2-3 years until the final inevitable collapse and final closing of what stores remain by that time.  Meanwhile the people running it will begin, if they already haven't, to strip the bones of it's meat for the good of their own pockets.

 

They were in trouble years ago before they introduced babies r us which became very profitable.  Looks like Amazon, eBay, etc. changed that.

[nux4lyfe]

7 minutes ago, SabreFan1 said:

Just the beginning of a long slow death.  They'll keep contracting for another 2-3 years until the final inevitable collapse and final closing of what stores remain by that time.  Meanwhile the people running it will begin, if they already haven't, to strip the bones of it's meat for the good of their own pockets.

 

They were in trouble years ago before they introduced babies r us which became very profitable.  Looks like Amazon, eBay, etc. changed that.

I never really got how people shop so much online though, Like when I want to purchase an item, I like to physically look at it before I buy it because if you buy online returning that thing would be a bish!

[Tre Mac]

Haven't been in a toy store since my lego building days as a kid.  This thread reminds me of the movie 'Big' lol.

[Penskih]

34 minutes ago, nux4lyfe said:

I never really got how people shop so much online though, Like when I want to purchase an item, I like to physically look at it before I buy it because if you buy online returning that thing would be a bish!

What do you need to look at in real life? The only thing i usually dont buy online are shoes and clothes. I always just end up reading a bunch of reviews and watching videos on what im purchasing. And if i feel like i need to see it in real life first ill find it in store, then usually buy it online anyway cause it's cheaper. 

[D-Money]

31 minutes ago, Tre Mac said:

Haven't been in a toy store since my lego building days as a kid.  This thread reminds me of the movie 'Big' lol.

They just moved the F.A.O. Schwartz toy store featured in that movie.

[Tre Mac]

39 minutes ago, D-Money said:

They just moved the F.A.O. Schwartz toy store featured in that movie.

Oh they better still have that floor keyboard.

[Glory_Days]

No surprise they went under, I mean what kid didn't want a real DICK TRACY toy car with SIRENS for $40.00 in the 90's!?

 

Wonder if the one in Willowbrook Mall will close down. Would suck for them, 2nd anchor store they've lost after Target imploded and was never replaced.

[Wilbur]

9 minutes ago, Glory_Days said:

No surprise they went under, I mean what kid didn't want a real DICK TRACY toy car with SIRENS for $40.00 in the 90's!?

 

Wonder if the one in Willowbrook Mall will close down. Would suck for them, 2nd anchor store they've lost after Target imploded and was never replaced.

My guess is the one in Willowbrook will be one of the last to go.  The Target there, when it was open, actually did reasonably well (one of the few).

 

I wonder if Toys R Us will give Geoffrey the same treatment as Zeddy.  The going out of business commercials were great.

 

 

 

[Pears]

That sucks  I always used to go there as a kid. 

[drummer4now]

8 hours ago, D-Money said:

As a parent, totally expected. Prices too high, and simply far too much inventory. But when it comes to finding certain items or services (baby gift registry), often the only real game in town.

 

Too many of them as well. There's 3 here in Calgary, where 2 or even just 1 would suffice. Often they're mostly empty, and it can be difficult to get assistance - even in the baby registration area (which should be a cash cow for them). Less stores that provided better service would be preferable, and probably would end up with similar total sales.

 

Basically this..

I can remember going there in the early 2000's and being shocked at the prices for toys and things, and then recently going back again and seeing similar prices.

 

I'm surprised how they even were in business for so long.. 

[Violator]

1 hour ago, Glory_Days said:

No surprise they went under, I mean what kid didn't want a real DICK TRACY toy car with SIRENS for $40.00 in the 90's!?

 

Wonder if the one in Willowbrook Mall will close down. Would suck for them, 2nd anchor store they've lost after Target imploded and was never replaced.

It will probably be sears next

The ownership should just start putting up towers on that gigantic parking lot.

[ForsbergTheGreat]

Wholesale Sports last week, Toy R Us this week.  Online shopping is really hurting brick and mortar retail.  Just goes to show people care more about price and convince than they do about service.  Not that it's a bad thing. 

[bishopshodan]

if we keep ordering everything online.....

 

 

 

[SabreFan1]

5 hours ago, nux4lyfe said:

I never really got how people shop so much online though, Like when I want to purchase an item, I like to physically look at it before I buy it because if you buy online returning that thing would be a bish!

It depends on the item as to whether I buy it online or not.  Most big box retailers in the US like Best Buy and WalMart will price match with online stores.