Things aren’t looking too good for Toys ‘R’ Us as multiple reports say it has filed for bankruptcy protection in both the US and Canada. The once dominant toy company has nearly 1,600 stores and 64,000 employees at stake — but we hear the debt restructure is necessary.
European, Australian, and Asian locations reportedly will not be affected by the companies restructure.
The firm’s European operations are not part of the bankruptcy proceedings and Toys R Us says it does not expect any immediate impact on its UK stores.
Toys R Us’s operations in Australia, about 255 licensed stores and a joint venture partnership in Asia are also not included in the bankruptcy move.
As you can imagine, the advancing technology age has been shifting the game, forcing companies to keep up. Which is why Toy ‘R’ Us says they are counting on online sales to “secure its future.”
Neil Saunders, managing director of GlobalData Retail says:
“The past decade has seen a dramatic change in the domestic toy market with new channels, increased competition, and new technology all having a deleterious impact on the sector and traditional toy stores. Unfortunately, Toys ‘R’ Us has not responded effectively to these challenges.”
This is truly the ending of an era. What are your thoughts Roommates?
TSR STAFF: Chantel Kelli! @_popchanny!