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-   -   Toys R Us Files for Bankruptcy (https://www.colonyofgamers.com/cogforums/showthread.php?t=33575)

DoctorFinger 09-19-2017 08:29 AM

Toys R Us Files for Bankruptcy
 
Another one bites the dust...

US retailer Toys R Us, once the #2 retailer in video games, has filed for Chapter 11 bankruptcy protection. The retailer promises all stores will stay open for business, and all vendor shipments should be protected, for the time being at least.

What happened to a company which used to be ubiquitous across the us? As with most specialty retailer, they're being eaten at from the top by general goods mega retailers and the bottom by hyper specialized retailers.

If you shop at TRU, you shouldn't worry in the near term. But I wouldn't put down any more deposits with that company until, and unless, they emerge from Chapter 11.

Source - Polygon

DoctorFinger 09-19-2017 08:31 AM

Anecdotally I hear a lot of people call TRU stores messy and with abysmal customer service. That can work if you offer something else: rock bottom prices (Wal-Mart), massive selection (Amazon) or hard-to-find items (specialty shops). But if you don't do anything particularly well, having unpleasant stores will just make it worse.

fitbabits 09-19-2017 09:12 AM

I think I've shopped in Toys R Us twice since I moved to the US in 2000. Both times the stores were poorly laid out, inadequately stocked, and staffed by people who, by and large, clearly didn't want to be there.

muddi900 09-19-2017 09:18 AM

Over 85% of retail is still physical. Toys R Us failed because of the leveraged buyout of competitors. Taking on 6.6 billion of debt in 2005 when the total retail toy sales were 21 billion.

Toy sales did decline, but have been growing year over for the past 4 years. Blaming Amazon for failure is the new "Mexicans taking our jobs", but with less racism.

jpublic 09-19-2017 10:13 AM

I wonder how this affects TRU Canada. Every time I've been in there, they have a super clean store, but they're also in a crappy location - outside the big fashion mall, but sharing its for-pay parking lot.

DoctorFinger 09-19-2017 10:18 AM

The article says this filing is for the US & CAN versions of the store. Overseas stores with TRU branding are, apparently, not affected.

johnperkins21 09-19-2017 10:48 AM

I'm honestly surprised it hasn't happened earlier. Every time I go into a TRU, it's pretty empty, in addition to it being messy (which isn't surprising for a store that caters to children). I still like to go into TRU to browse, but don't think I've purchased anything there in quite a long time.

maharahaj 09-19-2017 01:19 PM

I started going to TRU as of late because I now have a niece and nephew, but I can attest to them having very poor customer service. However, often times their computer system has the wrong price points in to the customers advantage.

jpublic 09-19-2017 02:00 PM

Quote:

Originally Posted by DoctorFinger (Post 1374765)
The article says this filing is for the US & CAN versions of the store. Overseas stores with TRU branding are, apparently, not affected.

Oops. Silly me. I noticed in the article it says 'mostly profitable' with regards to their stores. Makes me wonder where this massive debt came from.

Hopefully they won't screw over their workers like Sears Canada did.

Fubl 09-19-2017 05:12 PM

most of the debt seems to be crap leadership by a hedge fund owner and basically looks like they want to clear the books and use the money to do store updates.

muddi900 09-19-2017 06:13 PM

Quote:

Originally Posted by jpublic (Post 1374774)
Oops. Silly me. I noticed in the article it says 'mostly profitable' with regards to their stores. Makes me wonder where this massive debt came from.

Hopefully they won't screw over their workers like Sears Canada did.

They bought a bunch of holding companies in 2005 for 6.6 Billion.

Every major retail failure can be attested bad borrowing practices and shitty acquisitions.

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MagGnome 09-20-2017 06:16 AM

Quote:

Originally Posted by fitbabits (Post 1374760)
I think I've shopped in Toys R Us twice since I moved to the US in 2000. Both times the stores were poorly laid out, inadequately stocked, and staffed by people who, by and large, clearly didn't want to be there.

I've been to Toys R Us maybe 2-3 times in my life as well (there were none where I grew up) and this was also my experience. I went with the BF a year or two ago to find some amiibos that were on sale, and just locating them was a headache. The store was dirty, poorly laid out, and overall unpleasant.

SilentScreams 09-21-2017 03:01 AM

The last time I went to one of their stores, my dad was buying me an Indiana Jones game for the Sega Master System. Weird that I remember that so specifically. They always seem to set up shop in gigantic buildings but never have that many people in them. Maybe they should have looked at downsizing a little.

TheKeck 09-21-2017 06:18 AM

We would often go to Toys R Us for special occasions like birthdays. We've done it every once in a while with our kids. Makes me sad to see it go, but not super surprising.

Ink Asylum 09-21-2017 08:05 AM

Toys R Us was my first job, working stock in the back room, and I remember playing the demo of Super Mario 64 over and over there around the same time.

Dav Slinker 09-21-2017 08:31 AM

Guys, it's not going anywhere. They're not closing any stores or anything.

pomeroy 09-21-2017 08:35 AM

Yes it is don't believe him it's dead forever now


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TheKeck 09-21-2017 09:38 AM

Quote:

Originally Posted by Dav Slinker (Post 1374840)
Guys, it's not going anywhere. They're not closing any stores or anything.

I guess I noticed that earlier but forgot. I don't know what this means.

Narradisall 09-21-2017 10:28 AM

I didn't realise until last year that Toys R Us was still a thing.

Used to remember going to a store here in the U.K. As a kid, haven't seen one in the last couple of decades.

It's death is not s shock.


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johnperkins21 09-21-2017 11:33 AM

Quote:

Originally Posted by Dav Slinker (Post 1374840)
Guys, it's not going anywhere. They're not closing any stores or anything.

It isn't right now, but it's in its final death throes and will be gone within the next decade, probably before 2021. The only thing I can think of that might save it would be someone like Walmart buying it and integrating the name into their toy section.


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