Saturday, 21 October, 2017

Toys R Us Files for Bankruptcy, Keeps Stores Open

Toys 'R' Us shutdown looms amid bankruptcy filing Toys 'R' Us considers bankruptcy as vendors tighten screws
Howard Terry | 21 September, 2017, 00:24

Retailer Toys "R" Us has filed for Chapter 11 bankruptcy protection in a USA court, the company said, amid heavy debt and a tough environment for bricks and mortar stores.

So, for many people the news this week that Toys R Us is filing for bankruptcy and may start closing stores right after the holidays is sad, as memories of neon-pink displays of the latest action figures go the way of KayBee Toys, Radio Shack and Sizzler.

In May 2009, Toy R Us acquired the famed FAO Schwartz brand, but the company would shutter the store that year, and ultimately sold it to ThreeSixty Group, Inc.in October 2016.

The specialty toy store has struggled as it increasingly competes with online retailers in its two main businesses: baby goods and toys. "In 2006, it purchased competitor FAO Schwarz, but eventually closed its iconic NY store on Fifth Avenue, citing high costs", writes Abha Bhattarai for the Washington Post.

Kirkland & Ellis LLP is serving as principal legal counsel to Toys "R" Us, Alvarez & Marsal is serving as restructuring advisor and Lazard is serving as financial advisor.

Toys "R" Us wants to use the bankruptcy process to restructure and make the company viable over the long term.

The company has received a commitment for over three billion US dollars in debtor-in-possession financing from various lenders, including a JP Morgan-led bank syndicate and certain of the Company's existing lenders.

Toys "R" Us has been facing fierce competition from online giants, as well as discount stores.

Going forward, it will be business as usual the company said, at least for customers and post-filing vendors, now that it has received commitments for over $3 billion in new financing that will help keep the doors, website and accounts payable department open. Mattel and Hasbro, for example, saw their share values dip greatly as one of the most popular toy retail stores announced this exploration.

Mark Lee, an associate professor at Ted Rogers School of Retail Management at Ryerson University, added that Toys "R" Us needs to move beyond having expensive toys lined up along store aisles.

Its operations outside of the USA and Canada, including its approximately 255 licensed stores and joint venture partnership in Asia, which are separate entities, are not part of the filings.

The company faces US$400 million in debt payment, which falls due in 2018, and was burning through its cash. Same-store sales have fallen for three straight quarters. As of now, there has been no announcement that any stores will close.

Lee explained that while a decade ago children were playing with traditional toys, the store needs to adapt to the "new kids on the block" that would rather buy electronics.

Recommended

  • Iran president says Trump's United Nations  speech was full of 'ugly, ignorant words'

    Iran president says Trump's United Nations speech was full of 'ugly, ignorant words'

    Trump had shared with him his decision on the Iran deal, but said France favored keeping it "because it's a good one". Speculation has swirled around whether Trump will nullify the Iran agreement before a key deadline next month.
    Chris Wood scores against old side, Burnley lose on penalies

    Chris Wood scores against old side, Burnley lose on penalies

    Either way, Ladbrokes now has a little egg on their face over the tweet, and Burnley fans are probably still upset. Leeds will find out who they meet in the next round after tonight's round of fixtures are concluded.
    Why Gambling Online Should Be a Right and Not a Privilege

    Why Gambling Online Should Be a Right and Not a Privilege

    It’s a game of chance isn’t it? But if it’s a game of chance that you can play online, then it’s a no-no. Furthermore, the study suggests that it’s far easier to police gambling addiction online than it is in real life casinos.
  • Chasing Plan for World Hurdle Winner Thistlecrack

    Chasing Plan for World Hurdle Winner Thistlecrack

    However, this is perhaps not the route to go for punters who are again looking to beat the bookmakers, with the Supreme Novices' Hurdle the perfect example.
    Top Premier League contenders after the transfer window

    Top Premier League contenders after the transfer window

    Now Eden Hazard is playing well again and Diego Costa is hitting some scoring form, Chelsea should be challenging once more. After underachievement last season, most anticipate City being challengers this time around.
    How your prediction of new president can make you rich

    How your prediction of new president can make you rich

    Still, there are more States to win, before we will know the real winner, and more chances to receive a profit. Still, with odious millionaire Trump, Hillary Clinton, Bernie Sanders and Ted Cruz it can be a tough battle.
  • Tropical Storm Maria could be major hurricane as it nears Puerto Rico

    Tropical Storm Maria could be major hurricane as it nears Puerto Rico

    Hurricane-force winds extend outward up to 60 miles from the center and tropical-storm-force winds extend outward up to 185 miles. Meanwhile farther north in the Atlantic of the eastern coast of the U.S., Hurricane Jose continues its march forward.
    Sensex trading flat; Fed policy statement eyed

    Sensex trading flat; Fed policy statement eyed

    FII's passive trading approach with capital inflow limited to primary market and debt also might have weighed down the momentum. Even domestic institutional investors (DIIs) offloaded shares worth a net Rs 77.68 crore yesterday, as per provisional data.
    Current State Gambling Laws in the USA

    Current State Gambling Laws in the USA

    Local Gambling Laws Since the USA is a huge country, grasping the complete landscape of local gaming laws is virtually impossible. Despite that, there are still online casinos that accept American players and give them options to make deposits and withdrawals.
  • Supreme court bashes IEBC for Kenyatta's voided election

    Supreme court bashes IEBC for Kenyatta's voided election

    Maraga said the opposition had failed to show evidence Kenyatta had campaigned using state resources or undue influence. Thousands of the forms were not made available, as legally required, by the time results were announced.
    Make a bet on the chess tournament

    Make a bet on the chess tournament

    You need to gather the information about their weak and strong habits, before you will visit best sports betting site . Some players are trying to make quick decisions, while others can better manifest themselves after long reflection.
    Ichiro Suzuki Breaks Pete Rose's All-Time Hits Record

    Ichiro Suzuki Breaks Pete Rose's All-Time Hits Record

    Unfortunately, the one person who doesn’t seem too happy about Ichiro breaking the record is the former owner of the record. Grace said he didn’t care if some of the hits came in Japan because Ichiro was still getting them against professionals.

Boris 'will quit in days if May opts for a soft Brexit' Boris 'will quit in days if May opts for a soft Brexit' He said: 'We are working together, that is the key thing, to make sure that Britain can take advantage of the opportunities of Brexit'.

Wild, Wild Thot: Kevin Hart's Fling Said To Be A 'Travelling Stripper' Wild, Wild Thot: Kevin Hart's Fling Said To Be A 'Travelling Stripper' In a recent Instagram post by Hart, he posted a picture of his branded tee-shirt with the Inscription, "Shut up and Run". Montia Sabbag has come forward as the woman in the video allegedly used for an extortion attempt against Kevin Hart .

Vicente claims glory at Scottish National Vicente claims glory at Scottish National With mixed fortunes in past races, recent form for Vicente meant that he was the 14/1 outsider for the race with bookmakers Coral. Having started the day trailing, wins for Vivaldi Collonges and Le Mercury added over £40,000 to Nicholls’ total.