Toys R Us is CLOSING! - UPDATE
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| The Toys "R" Us store in Warwick, RI, which is set to close April 2018 |
10:34 PM
Well... Maybe.
Throughout the day, there has been much buzz about the future of American toy retailer Toys "R" Us after Bloomberg first reported that the chain was considering to liquidate their United States operations.
The toy chain has been struggling in recent years with the rise of online competitors such as Amazon, which has slowly begun to take away TRU's customers.
The company, founded in 1948, filed for Chapter 11 Bankruptcy Protection last year, with a whopping 5 Billion dollars of debt. Concerns for the company grew after lackluster sales during the 2017 holiday season, and lead for the struggling company to release a list of 182 stores that would be closing in by April 2018.
As of last year, Toys "R" Us accounted for more than 15% of all toy sales within the United States, but even this market share wasn't enough to help keep the company afloat as many consumers turn to online shopping for many products, including toys. Toy companies both large and small have shown great concern regarding the potential liquidation, as TRU provided a medium for upstart toy manufacturers to get a grip in the market, while also providing a simple network for international toy companies such as Mattel and Hasbro to distribute their product.
None of this is written in stone quite yet, as all of this is simply investor speculation. It's still a possibility for a rescue buyout, however with each passing day it seems less and less a viable option.
According to some sources, liquidation for all stores will begin as early as next week.
As more information comes out about the state of TRU, I'll be sure to keep you all updated.
Until next time,
sad when it closed
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