Toys 'R' Us Australia goes into administration

[Magnus]

https://www.insideretail.com.au/blog/2018/05/21/toys-r-us-australia-falls-into-administration/

http://www.news.com.au/finance/business/retail/toys-r-us-goes-into-administration-in-australia/news-story/1699b0958dbe97de1ffde6e0e53e3e90

Note that stores will still be trading as usual.

[Bidoofdude]

Unfortunate. Could we see a similar “sell everything for pennies” liquidation approach if/when the days start counting down?

[Galvatran]

Content of articles mirrored below.

Inside Retail

Toys ‘R’ Us Australia falls into administration
May 21, 2018
Toys ‘R’ Us Australia and sister brand Babies ‘R’ Us have fallen into voluntary administration, following the collapse of US-based Toys ‘R’ Us Inc.

Insolvency firm McGarthNicol was appointed as the administrators after a bid to purchase the Australian business was withdrawn.

McGarthNicol said in a statement on Monday that all Toys ‘R’ Us Australia stores will continue to trade as options for a potential sale of the standalone Australian business is explored.

44 retail stores and around 700 permanent staff are caught up in the administration.

Toys ‘R’ Us Inc has been seeking to offload its international businesses for several months amid a liquidation process that is seeing more than 700 stores wound down in the US.

It has already entered into agreements to sell off its Canadian and European businesses, while its US operations remain in play.

Toys ‘R’Us Inc has also said that multiple offers have been made for Toys ‘R’ Us Asia, which it owns an 85 per cent stake in.

The Australian Toys ‘R’ Us business has been struggling for some time, booking millions in losses in recent years, but was being expanded under the leadership of Dianne Guerreiro, who as of late last year was actioning plans to open new stores.

The collapse of Toys ‘R’ Us sister brand Babies ‘R’ Us is the latest in a long line of retail collapse in the baby goods category in the last 18 months, that has now claimed the scalps of three of four of the largest players in the sector.


news.com.au

Toys ‘R’ Us goes into administration in Australia
MAY 21, 20187:27pm
TOYS ‘R’ US Australia has gone into voluntary administration months after the US and UK retail giant’s collapse.

Directors of the company resolved to appoint voluntary administrators McGrathNicol after the withdrawal of the final bidder for the sale of the Australian business, McGrathNicol said in a statement on Monday.

All Toys ‘R’ Us Australia stores will remain open and continue to trade while the administrators explore options for the sale.

The stand-alone Australian business operates 44 retail stores across Australia and employs about 700 permanent staff.

Toys ‘R’ Us filed for bankruptcy protection in the US last September and after frantic attempts to restructure the business finally waved the white flag in March when chief executive David Brandon told employees the retailer’s more than 700 remaining US locations would go along with 33,000 jobs.

“We’re putting a for sale sign on everything,” Mr Brandon told employees in a conference call. “Frankly, all anyone has to do is offer one dollar more (than liquidators).”

Shortly afterwards, the UK and Irish operations also shut up shop.

Toys ‘R’ Us in Australia has continued to trade as normal with speculation the company may bundle the business up with the Asian stores and sell the whole lot off, potentially as a stand-alone operation under the same and much-loved brand.

The development follows an unusual fire sale of the US business’s intellectual property to pay off creditors in the wake of its bankruptcy.

Alongside the Geoffrey the Giraffe logo and the Babies R Us trademark, the firm is also putting up a series of racy URLs including kinkytoysrus.com, sex-toys-r-us.com, and toysrussucks.com.

[hYpNoS]

O_O I just want my mp black panther please and for those poor guys at the barely a year old werribee plaza store to keep going

[Galvatran]

Alongside the Geoffrey the Giraffe logo and the Babies R Us trademark, the firm is also putting up a series of racy URLs including kinkytoysrus.com, sex-toys-r-us.com, and toysrussucks.com.
That's just weird.

(could it be they own the domain names to prevent others from acquiring them?)

[Bidoofdude]

That's just weird.

(could it be they own the domain names to prevent others from acquiring them?)

Yes, pretty sure a lot of companies buy URLs like this to prevent a less than glowing image of them. It would be of no use to anyone or anything, so I guess they're just throwing it all out. No point in keeping them.

[i_amtrunks]

Didn’t baby bunting and baby wrehouse also close down in the last two or so years???

How can stores that have such a prime market Keep going out of business? What are they all getting so wrong?

[Bidoofdude]

Didn’t baby bunting and baby wrehouse also close down in the last two or so years???

How can stores that have such a prime market Keep going out of business? What are they all getting so wrong?

Baby Bunting is still around. I applied for a job at one (I got turned down), as did my friend. They seem to be in the top though.

[hYpNoS]

I hate to be an alarmist but the mp shadow panther listing on the tru website is gone.

Shall we start killing pre-orders or hold fire?

[Dimi194]

Hoping they find a new owner, TRU really seems to have upped their game recently too...

[SMHFConvoy]

Hopefully it's bought by another company, I don't want people to lose their jobs

[Starscream77]

Note if you have a gift voucher for TRU as its in administration you must spend the equivalent of the value of the card in cash to be able to claim the value of said card.

[UltraMarginal]

Didn’t baby bunting and baby wrehouse also close down in the last two or so years???

How can stores that have such a prime market Keep going out of business? What are they all getting so wrong?

I know the Baby Bunting in Castle hill closed down but I'm pretty sure the one in Chatswood is till going strong.

BRU is a bit like TRU in that a lot of their prices are slightly higher than some easy alternatives. All baby stuff is expensive, a lot for good reason. A lot of testing and performance rating goes into a baby products to ensure they are safe. In Castle Hill there is a Baby Kingdom a few blocks from the TRU/BRU and they are always very busy, I wouldn't be surprised if they had at least 15 staff on at any one time.


Note if you have a gift voucher for TRU as its in administration you must spend the equivalent of the value of the card in cash to be able to claim the value of said card.

that's a bit shit.


I think part of TRU's problem in Australia is nearly all of their stores are remote to shopping centres. I can only think of the Parramatta store when trying to think of one that's inside a westfield or similar. all the others (Moore Park, Bankstown, Castle HIll) are in home maker centres.

I honestly hope they find a buyer.
I wonder, if I walked into a bank and asked for a loan that would allow me to buy TRU Australia what they would say:confused::p;):(

[dsaint]

Very sad news for those employed by TRU. I hope they find a buyer - I talked to staff at one a few months ago and they said they had been reassured there wouldn't be repercussions from the shutdown in USA/Canada/UK.

The reason they moved from major shopping centres was survival - Westfield's rents are horrifically high and they can get more floorspace at a homemaker's centre for cheaper. Not sure if that move hurt them - I often see familys at the homemaker's centre at Casula and the children almost always succeed in dragging their parents for a run through TRU there.

Best regards
Dazz

[i_amtrunks]

My apologies in regard to baby bunting, although I am sure that another major baby chain did shut down recently.

I think opening all the new TRU stores in ex Masters buildings has probably hurt them too, it cost alot to fit out and supply all these new stores that are a fair way from their competitors and that cost an extra 20% than the normal toy prices at big w and kmart. Their saving grace should've been a wider range, but it always seems that they have the same old stock for a long time and only a smattering of new stuff that goes quickly, leaving the old wave one stuff behind. (The Tf Movie affect!)

[UltraMarginal]

I know Pumpkin patch went out of business and I'm pretty sure another baby/toddler clothes store did too. they have a similar problem to TRU though, their prices are very high compared with equivalent garments at a department store like Target or big W. There might be a quality difference, but not enough to justify the price, especially when the clothes only fit for a couple months at most.

It's also odd the BRU don't stock certain items at all. I think it's contractual, it's the only thing I can think of. eg: Pigeon baby bottles are, according to popular opinion (and I'd have to agree), by far and away the best bottle you can buy. Only a few of the specialist baby stores stock them. the same for Nuk brand dummies, undoubtedly the best dummy on the market, the best place and one of only few places to buy them is chemist warehouse.

I really do hope they find a buyer, unless it's someone like jerry Harvey, that probably wouldn't go well for anyone.

[ChlorHex]

I hate to be an alarmist but the mp shadow panther listing on the tru website is gone.

Shall we start killing pre-orders or hold fire?

I'd suggest finding another source for that.
Was a deposit required for the preorders?

[millhouse]

Payment was in full on the credit card at time of order.

[millhouse]

I've emailed their customer support. You can do so at auscustomerservice@toysrus.com.au(.)

Will update when I hear anything.

[millhouse]

After requesting (through their call system) a callback, Nathan called me back.

I provided my order number and enquired about the process from here. He advised that refunds weren't possible (which we knew already) and went to discuss the matter with some team other team members while I was placed on hold.

Prior to that, I advised him that I am a member of an online forum that would have a number of other people in my position and I would update them accordingly.

Upon returning to the call, Nathan advised that they do not know what is going to happen yet.

I've requested further information when it comes to hand. My details have been taken and I was advised it might be a few weeks.

All of that is, IMHO, a reasonable response in a shit situation.

I'd advise you all to contact auscustomerservice@toysrus.com.au with your order details, requesting an update in due course.

If/when I hear of anything, I'll update here as well.

In the event that TRU are unable to fulfil, I'd assume that someone with the Premium Collectables-experience in chargebacks might have some guidance. As I understand it, all orders for Shadowpanther have it listed as a pre-order for October delivery in the order receipt.

If so, I'd suggest raising that in due course to your bank once we find out what TRU are doing on it.

Hope that helps.

I didn't mention OTCA (other than the generic "an online forum" description) and remained polite with Nathan while I had him on the line. It's got to be a shitty week for them all there and I didn't want to make his day any worse than it already is.

[Other]

Apparently VIP points are now Void and can't be accrued or spent. I'm glad I spent mine when I brought some stuff a weeks ago, a shame I'm not getting the points from the Lego Ninjago City I brought using the coupon code on Friday(RIP In Peace those 400-odd points, you could've have saved me an extra 4 bucks)

[ChlorHex]

Payment was in full on the credit card at time of order.

Dang.
I really hope that you guys get your money back as a store voucher at the very least.
If TRU hasn't paid TakTom a deposit for the orders then in administration, that money isn't likely to be available now.
This is really unfortunate.
Start keeping a document trail as evidence for your chargebacks should it end up in that direction.

[ChlorHex]

In the event that TRU are unable to fulfil, I'd assume that someone with the Premium Collectables-experience in chargebacks might have some guidance.


Unfortunately, a lot of us do have that experience.
Should anyone require advice for Bankwest chargebacks, I'll be happy to help point you in the right direction.

[UltraMarginal]

and remained polite with Nathan while I had him on the line. It's got to be a shitty week for them all there and I didn't want to make his day any worse than it already is.

And I guarantee you he appreciated your politeness. :cool:

[millhouse]

And I guarantee you he appreciated your politeness. :cool:

One of my jobs is working in retail and I can't tell you how many people want to you to think an issue is that staff member's individual fault.

Given this case, where they're probably fielding a number of calls from people with a variety of issues, I figure pointing out I was polite was probably a point worth making - unless I misread your emoticon!

One of the PC threads talked about chargebacks after missed delivery dates. The TRU email specifically mentions Pre-order for October delivery, so hopefully that will assist, even if no-one has a copy of the item page online.

Also, I was offered merchandise (of my choice) worth the price I paid, but given the interim of not having an update on the actual item in question, I declined. Well aware I'm rolling the dice on the $120, but figured it was worth a shot.

[DaptoDog]

I'd be going straight for the chargeback route. Highly unlikely the pre-order will be honoured or refunded.

[kovert]

My apologies in regard to baby bunting, although I am sure that another major baby chain did shut down recently.

I think opening all the new TRU stores in ex Masters buildings has probably hurt them too, it cost alot to fit out and supply all these new stores that are a fair way from their competitors and that cost an extra 20% than the normal toy prices at big w and kmart. Their saving grace should've been a wider range, but it always seems that they have the same old stock for a long time and only a smattering of new stuff that goes quickly, leaving the old wave one stuff behind. (The Tf Movie affect!)

Another baby chain - Bubs Baby Shops - which operated in QLD and NSW went into liquidation in late 2017.

I also found TRU lacked regular restocks of lines such as Marvel Legends. They always have the same old figures shelf-warming. Restocking of LEGO products seemed pretty frequent, though. Recently they dropped the regular price of smaller LEGO $15.99 (RRP) sets to $12.99 which was surprising but welcome.

[hYpNoS]

I'd be going straight for the chargeback route. Highly unlikely the pre-order will be honoured or refunded.

Same here, I'm not going to be screwing around this time, and this time its paypal that'll be doing the heavy lifting, just need to dig into my history.

[Galvatran]

I'd be going straight for the chargeback route. Highly unlikely the pre-order will be honoured or refunded.
It's disappointing from TRU to put the preorder up in the first place knowing their financial position at the time & TRU's October release date.

[Galvatran]

I think part of TRU's problem in Australia is nearly all of their stores are remote to shopping centres. I can only think of the Parramatta store when trying to think of one that's inside a westfield or similar. all the others (Moore Park, Bankstown, Castle HIll) are in home maker centres.
It's a different picture for VIC. Werribee, Highpoint, Northland, Chadstone, Doncaster, Knox & Fountain Gate are in shopping centres.


Note if you have a gift voucher for TRU as its in administration you must spend the equivalent of the value of the card in cash to be able to claim the value of said card.
The rage is blowing up on social media.

[hYpNoS]

...the paypal site is buggy and won't even try the resolution center, contacting them (because of the limited assortment fields) gave me "oh the faq would be better" and I can't even respond to the email they sent me because that's buggy too!

*table flip*

Why do I have to ring these people all the time to fix their rubbish damnit already nearly smashed my phone last time trying to fix the last time something like this, it can barely txt let alone make calls.

EDIT:WHEW I tried it in chrome (which I detest, don't ask) and while still buggy (couldn't enter the product type) I managed to put my claim through, will update if any hassle happen, but I made it clear if the site can allow for cancellations but they send you an email instead saying nope that isn't right, that and the whole 2 month period from asia to australia, could be fishy, dunno but using that)

[Fungal Infection]

How would you go about a chargeback for Shadow Panther if you paid via afterpay?

[DaptoDog]

It's disappointing from TRU to put the preorder up in the first place knowing their financial position at the time & TRU's October release date.

I reckon only the very higher ups would have been aware of this potential outcome. Heck, my local TRU at Shellharbour is currently undergoing a refurb - talk about money wasted!

[Galvatran]

Now that TRU Oz has been placed in administration & potentially heading down the same path as TRU US, are people hoping / looking forward to a fire sale like in the US? If so, what items are you eyeing off?

[griffin]

Administration doesn't guarantee that the business is going to be shut down... it is just a high probability, as Administrators don't have much patience when it comes to finding a buyer. Their priority is seeing that investors (banks, etc) get their money back fast... and it can be easier to break up the business and sell off all of the assets, than find a buyer and go through a lengthy red-tape process.


As it were, this situation only occurred because a buyer pulled out, so there could be other interested parties.... we just have to wait for the first announcements of intentions by the Administrators.

[DarkHyren]

In the event that TRU are unable to fulfil, I'd assume that someone with the Premium Collectables-experience in chargebacks might have some guidance. As I understand it, all orders for Shadowpanther have it listed as a pre-order for October delivery in the order receiptLikely such drastic measures wont need to be taken considering that we're dealing with a professional toy company rather then a scamming thief, but yes if it comes to that all the info one might possibly need can be found in the active PC complaints thread.
How would you go about a chargeback for Shadow Panther if you paid via afterpay?Contact Afterpay, there is a page on their site that deals with undelivered goods (https://help.afterpay.com/hc/en-au/articles/115001356326-Goods-not-received-damaged-goods-AUS) that sounds like once the order is approved they wash their hands of things and wont help out, but this situation might be different enough that they will do something.
If so, what items are you eyeing off?Buy all the Transformers!

[FruitBuyer]

After requesting (through their call system) a callback, Nathan called me back.

I provided my order number and enquired about the process from here. He advised that refunds weren't possible (which we knew already) and went to discuss the matter with some team other team members while I was placed on hold.

Prior to that, I advised him that I am a member of an online forum that would have a number of other people in my position and I would update them accordingly.

Upon returning to the call, Nathan advised that they do not know what is going to happen yet.

I've requested further information when it comes to hand. My details have been taken and I was advised it might be a few weeks.

All of that is, IMHO, a reasonable response in a shit situation.

I'd advise you all to contact auscustomerservice@toysrus.com.au with your order details, requesting an update in due course.

If/when I hear of anything, I'll update here as well.

In the event that TRU are unable to fulfil, I'd assume that someone with the Premium Collectables-experience in chargebacks might have some guidance. As I understand it, all orders for Shadowpanther have it listed as a pre-order for October delivery in the order receipt.

If so, I'd suggest raising that in due course to your bank once we find out what TRU are doing on it.

Hope that helps.

I didn't mention OTCA (other than the generic "an online forum" description) and remained polite with Nathan while I had him on the line. It's got to be a shitty week for them all there and I didn't want to make his day any worse than it already is.

You're good people.

[MayzaPrime]

Apparently VIP points are now Void and can't be accrued or spent. I'm glad I spent mine when I brought some stuff a weeks ago, a shame I'm not getting the points from the Lego Ninjago City I brought using the coupon code on Friday(RIP In Peace those 400-odd points, you could've have saved me an extra 4 bucks)

I am so happy that I used all on my points on Studio Series Grimlock.

[Dimi194]

As much as TRU has faults, I think loosing it would be sad-they do have a good LEGO and Thomas and Friends range (other collections I dabble in), and are at least equally as good re: stock as every retailer--however they have far more range in toys generally than any other store, and my experience is that they care far more than Kmart/Target/Big W etc. employees when asking about specific items.

Here's hoping with some sensible decisions (e.g. no random picks online, stores controlling stock instead of head office) they can pick back up...

[millhouse]

I just received an email that all online orders will be processed as normal.

Needless to say, I have my doubts with this order and am now seeking confirmation, explicitly mentioning the timeframes involved and the product in question.

Will update accordingly.

[UltraMarginal]

One of my jobs is working in retail and I can't tell you how many people want to you to think an issue is that staff member's individual fault.

Given this case, where they're probably fielding a number of calls from people with a variety of issues, I figure pointing out I was polite was probably a point worth making - unless I misread your emoticon!



no you read it right, I worked in retail (supermarket) for 4 years, it's not the easiest job in the world by any stretch.

[Dimi194]

no you read it right, I worked in retail (supermarket) for 4 years, it's not the easiest job in the world by any stretch.

Amen, being in hospitality for 6 years (and counting), people being nice will change everything-I've broken company policy to help out nice customers where I can, but if you're going to be nasty, I'll just refer you to head office :p:p

[CHILENO20]

Amen, being in hospitality for 6 years (and counting), people being nice will change everything-I've broken company policy to help out nice customers where I can, but if you're going to be nasty, I'll just refer you to head office :p:p

Been working in hospitality for 18 years. It's never any easier, even less when you're a manager. Because even then you can't them where to go. *tiny rant*

[hYpNoS]

Along with contacting paypal for a dispute (pending) I also emailed them to see what they said, this also applies to credit card users


Hi hYpNoS,

Apologies for the inconvenience. I do understand your concerns and can offer three options:

The first option would be to contact your Paypal/bank directly and process a claim for funds, this would be the quickest way to receive your refund. Alternatively we can process a replacement order on your behalf of item/s of similar value, in replacement of the pre-order. The third option is to provide your details to our administrators, who will contact you with a Proof of Debt Request Form and review the refund from there.

So there you have it, don't just wait for them to get the money back

[DaptoDog]

Along with contacting paypal for a dispute (pending) I also emailed them to see what they said, this also applies to credit card users



So there you have it, don't just wait for them to get the money back

Well done for sharing this. Yes, getting a refund through PayPal or your bank is really the only way. That last option is a definite no-no, you would be lucky to get a few cents in the dollar back.

[hYpNoS]

Well done for sharing this. Yes, getting a refund through PayPal or your bank is really the only way. That last option is a definite no-no, you would be lucky to get a few cents in the dollar back.

I made mistakes before, not doing those again, plus despite paypal's current bugs its a far easier process and thus accessible option for me to chase these up.

A shame it came to this, no matter, plenty of other retailers still alive to take my money once more

[bowspearer]

no you read it right, I worked in retail (supermarket) for 4 years, it's not the easiest job in the world by any stretch.

The problem is when you've worked in it, pride yourself on your customer service, even when it costs you easy sales, and then expect that same thing from everyone you deal with. You know that old saying of "doctor's make the worst patients"? Well I honestly think it also applies to people in retail who pride themselves on going the extra mile for customers. LEL :D

[millhouse]

Lodged a dispute with CBA today. Will advise of updates (if anyone's interested).

[yoshi594]

Lodged a dispute with CBA today. Will advise of updates (if anyone's interested).

ah no confidence with TRU?

i'm contemplating whether to dispute with paypal or take the risk mmm

[millhouse]

ah no confidence with TRU?

i'm contemplating whether to dispute with paypal or take the risk mmm

Figure it's worth chasing up now.

[hYpNoS]

Update on paypal's handling of the case


Dear hYpNoS,

We have completed our investigation of your Buyer Complaint and, as per the seller's request, have issued a refund for the amount of the transaction below.


[REDACTED]

Any portion of your original payment that was funded with your credit card has been refunded directly to that credit card. The credit to your credit card should take two to three business days to post, and may not be immediately reflected in your card balance.
Thank you for your cooperation and patience.

Thank you,

Protection Services Department

TRU are willing to comply it seems.

[Galvatran]

It's a different picture for VIC. Werribee, Highpoint, Northland, Chadstone, Doncaster, Knox & Fountain Gate are in shopping centres.

Visited Fountain Gate for the first time yesterday ... and found out TRU was located separate to the main shopping complex. Bit of a walk too. :o

[SMHFConvoy]

Visited Fountain Gate for the first time yesterday ... and found out TRU was located separate to the main shopping complex. Bit of a walk too. :o

That's like the one out at Erina Fair in nsw, part of a shopping center but separate.

[Galvatran]

That's like the one out at Erina Fair in nsw, part of a shopping center but separate.
It's a double edged sword. Lease is relatively cheaper but less foot traffic too.

TRU Fountain Gate was dead quiet yesterday. And they had a security staff which adds to the overall cost of doing business.

[millhouse]

I received the following email this morning.

We regret to inform you that unfortunately we are not able to fulfil your Toys R Us Online Order for the following product, due to insufficient stock levels.
- Transformers Takara Tomy MP-34S Shadow Panther

Toys “R” Us Australia have recently entered voluntary administration; therefore, a refund cannot be processed.

Please go to this link to read our full administration information https://www.toysrus.com.au/administration-information-2018/

We can however, offer for you to choose other items to the same value, on our website www.toysrus.com.au and we will process this at no further charge to you.

We can also provide your details to our creditors, who will contact you with a proof of debt form request.

The other alternative is to lodge a dispute with your bank for the amount charged on your credit card for this transaction.
You will more than likely get your money back for the order we are unable to fulfil.

We understand your frustrations with this matter and sincerely do apologise for any inconvenience caused.

Should you have any concerns regarding this matter, please do not hesitate to contact us on 1300 8697 787.

Last Friday, 25/05, I raised a dispute with my bank. I've forwarded this email to my bank just now.

[Firestorm]

Just got the same email. Pretty disappointed.
The Masterpiece Cheetor mold is going to haunt my nightmares forever with how much of a pain it’s been getting Toys of it
Now I gotta find somewhere else I can get a Shadow Panther from :/

[Dimi194]

I received the following email this morning.

We regret to inform you that unfortunately we are not able to fulfil your Toys R Us Online Order for the following product, due to insufficient stock levels.
- Transformers Takara Tomy MP-34S Shadow Panther

Toys “R” Us Australia have recently entered voluntary administration; therefore, a refund cannot be processed.

Please go to this link to read our full administration information https://www.toysrus.com.au/administration-information-2018/

We can however, offer for you to choose other items to the same value, on our website www.toysrus.com.au and we will process this at no further charge to you.

We can also provide your details to our creditors, who will contact you with a proof of debt form request.

The other alternative is to lodge a dispute with your bank for the amount charged on your credit card for this transaction.
You will more than likely get your money back for the order we are unable to fulfil.

We understand your frustrations with this matter and sincerely do apologise for any inconvenience caused.

Should you have any concerns regarding this matter, please do not hesitate to contact us on 1300 8697 787.

Last Friday, 25/05, I raised a dispute with my bank. I've forwarded this email to my bank just now.

What a shame, but at least they're being upfront and honest about it.

[Omega Metro]

What a shame, but at least they're being upfront and honest about it.

So glad I cancelled my preorder a day after the preorder went up:rolleyes:

[MayzaPrime]

So glad that I didn't pre-order

[Paulbot]

Toys R Us latest email newsletter tells us "All stores are still open!", "You can still shop 24/7 online!!" and they price match or you can buy now, pay later!

[reillyd]

And their latest news is that they can't supply shadow panther due to 'insufficient stock' because Hasbro won't provide without settling their bill.
But don't' worry, they will pass your details on as a creditor to the liquidator. How thoughtful for their loyal customers.

[AJ_Prime]

One of the options they suggested was to arrange a chargeback through your bank. At least a lot of us have some experience in that process now, so this should be a breeze. ;)

[millhouse]

Received successful notification of my dispute to the TRU charge.

Now, by dumb luck, our credit card was compromised yesterday so I'll have to wait until the new cards are issued to be sorted, but its certainly good service from CBA.

[griffin]

From the Toy And Hobby Retailer Magazine is an update on the Australian ToysRUs situation (http://www.toyhobbyretailer.com.au/news/tru-australia-arouses-interest?utm_medium=email&utm_campaign=Newsletter%20-%206618&utm_content=Newsletter%20-%206618+CID_1222dd03b404855e7bab68e0efc84532&utm_source=Email%20marketing%20software&utm_term=Read%20more), following the first of two meetings by the creditors, with the option of complete liquidation of the business still a strong possibility (either by the Administrators, or selling the business to a company that just wants to break it up and sell it all off).



At the first creditors meeting of Toy R Us (TRU) Australia, McGrathNicol administrators revealed that there are 30 interested parties looking at the business.

Jason Preston, administrator, said that the interested groups have a range of intentions, from buying the business to liquidating it. The interested parties have signed non disclosure agreements and are from both Australia and oversees.

It was also revealed that TRU Australia currently has $60 million of inventory; fixed assets of $16 million; trade, employee and other creditors owed $3 million (each category); and, a whopping $90 million owed to inter-company creditors. The global group has not reported an annual profit since 2013, according to reports.

The administrators said that they were likely to apply for an extension of two to three months to the convening period, allowing the interested parties time to mull over the information and put in offers.

Creditors will vote at the second meeting to decide whether a sale of the business will occur or if a liquidation process should begin, based on the findings and offers the administrators receive.

A committee of inspection (COI) was formed at the meeting, which allows voluntary creditors to represent the interests of all involved creditors. The COI advises and assists the administrators and can request information from them. The TRU COI is made up of: representatives from Wilmington National Trust; employee representatives Scott Toner and Sally-Anne Barbara; and, landlord representatives Scentre Group and Supacenta.

McGrathNicol has approached all the previously interested parties about the new sales process.

Meanwhile, in Canada, Fairfax Financial secured the TRU and BRU operations in the region as the sales process closed. The company is now entirely Canadian-owned and operated.

“...We are thrilled to be part of the Fairfax family and to now operate as a reinvigorated company that is 100 per cent Canadian. I would like to extend a heartfelt thank you to our customers for their loyalty and for choosing to shop at Toys R Us and Babies R Us,” Melanie Teed-Murch, president of TRU Canada said.

The existing stores will adopt a similar format to the newly opened Canadian stores, which includes designated play areas, interactive stations and mobile-pay.

In the US, the TRU head office began its liquidation sale with a large Geoffrey the Giraffe, a giant Minion and a life-sized Sulley from Monsters Inc. included in the sale alongside office furniture, meeting room and theatre equipment.

The employees are still battling for severance, meeting in New Jersey to lobby lawmakers to make a change.

“This is Wall Street greed. How can they walk away with millions and leave 33,000 workers with zero?” Tracy Auerbach, a 31-year employee of TRU said in May.

“The system is rigged when it puts short sighted corporate interest over long term community interest. The system is rigged when good honest work sees only punishment and cynical financial gamesmanship sees all of the reward,” US Senator Cory Booker said.

All US TRU stores are expected to close by 30 June.



Unfortunately the current financial position of TRU (having more debt than assets, and no annual profit since 2013) will make it hard to entice a business to want to buy it up to keep it operating. The easiest thing would be to just sell off all the assets (with a lot being sold quickly for less than their full value, so they wouldn't get the full $76 million of the assets value), and if creditors only end up getting back about 60 cents for each dollar owed, there won't be any money for other "debts" like refunds for pre-orders (if you aren't able to get your bank to get your money back).

[Galvatran]

$60 million in inventory. Must be valued at TRU's RRP.

(BTW I've written off @ $5 in store credit on my VIP card. That equates to roughly a handful of Lego pieces of the Death Star)

[BruiseLee]

$60 million in inventory. Must be valued at TRU's RRP.

(BTW I've written off @ $5 in store credit on my VIP card. That equates to roughly a handful of Lego pieces of the Death Star)

Well at 4016 pieces at $799 RRP, that's 25 pieces right there for that store credit.

[dirge]

Well then... I guess that's that. (https://www.smh.com.au/business/companies/toys-r-us-to-close-australian-stores-hundreds-of-jobs-lost-20180620-p4zmpa.html)

[1AZRAEL1]

End of an era

[griffin]

That'll be the end of Japanese and Asian imports... and probably most of the American exclusives too, as none of the other major toy carriers take too many exclusives, if at all, and when they tried to get Myer to be a source of collector exclusives a couple years ago, it failed terribly.


I don't think we had any any of those special midnight launches or promo events up here in Brisbane, but I think the people in Sydney and Melbourne will miss them.


The thing I will miss most is their really relaxed price-matching policy. I don't think I ever had a request rejected, and they never rang up the competitor's store to verify if they had the item in stock.

[Bidoofdude]

That'll be the end of Japanese and Asian imports... and probably most of the American exclusives too, as none of the other major toy carriers take too many exclusives, if at all, and when they tried to get Myer to be a source of collector exclusives a couple years ago, it failed terribly.


I don't think we had any any of those special midnight launches or promo events up here in Brisbane, but I think the people in Sydney and Melbourne will miss them.


The thing I will miss most is their really relaxed price-matching policy. I don't think I ever had a request rejected, and they never rang up the competitor's store to verify if they had the item in stock.

Myer was a disaster with the exclusives. Jacked up prices 1.5 to 2 times what they should have been, whether Myer set them or Hasbro, was just a horrible ordeal.

I'm not sure why Hasbro doesn't sell directly to the public here. Takara do it with TTmall, and in the US with Hasbro Toy Shop, though technically its own shop. I know nothing about economics and distribution, but it would alleviate a lot of people's concerns over limited online retailers with official product, help them get rid of a lot of that stock that they have but can't get to anybody (Ramhorn :( ), and avoid otherwise expensive shipping costs, since they are (I presume) from a warehouse in the country. An avenue for exclusives too, without the middleman.

A bit of a sad time. :(

[Galvatran]

Watch the vultures circling.

[i_amtrunks]

Interesting that they are going to wind up in July rather than the end of June. Now to see if they cut prices or return to wholesaler...

[Trent]

The thing I will miss most is their really relaxed price-matching policy. I don't think I ever had a request rejected, and they never rang up the competitor's store to verify if they had the item in stock.

Shellharbour has always been pretty tight on their price matching policy. I often had matches rejected because the retail chain I was asking them to match didn’t have any stock locally. And they always rang to confirm.

Wollongong was completely different. As long as the price you were quoting wasn’t below cost, they matched straight away.

[Trent]

Interesting that they are going to wind up in July rather than the end of June. Now to see if they cut prices or return to wholesaler...

Depends on the brand. I heard that the Lego in US TRUs didn’t get discounted, it just wasn’t on the shelves the first day of the discounting. Other things got massive discounts.

[Bladestorm]

Depends on the brand. I heard that the Lego in US TRUs didn’t get discounted, it just wasn’t on the shelves the first day of the discounting. Other things got massive discounts.

In Hong Kong "discounting" on LEGO in Toys'R'Us is controlled by LEGO in a similar vein to the way Apple control pricing and discounts on products globally according to one of my husband's friends who works for LEGO. Only the smaller resellers in HK seem to be able to get away with their own pricing regimes. If the same price control rule applies to Toys'R'Us AU and LEGO globally then you're not going to see it discounted in stores here either. I'm curious to see if they do reduce it though as that is one toy range I probably would venture into Toys'R'Us to purchase.

[Raider]

End of an era

Sure is. I feel for kids who will not know the joy of being able to explore these types of toy stores. I know I loved going there as a kid, even if I didn't end up getting anything.

My wife's first job was at a TRU when she was 15. She is thinking of calling a few old friends, getting some flasks and reminiscing in the store just before it closes :p

[MV75]

Sure is. I feel for kids who will not know the joy of being able to explore these types of toy stores. I know I loved going there as a kid, even if I didn't end up getting anything.



No tru around when we were kids. We had the usual department stores of bigw, target and kmart. But what else we had was toyworld which will still be around.

Only we now as adult collectors will miss it, but we'll just keep buying online as we already do for those exclusives.

[Raider]

No tru around when we were kids. We had the usual department stores of bigw, target and kmart. But what else we had was toyworld which will still be around.

Only we now as adult collectors will miss it, but we'll just keep buying online as we already do for those exclusives.

Perhaps you are a little older than I am but I remember the first time I ever went to a TRU and I was 6 years old and my parents bought me a Lego castle. We also had World 4 Kids. I remember always bugging my mum at the local Westfield to take me into TRU to check out the latest Transformers and other toys I was into.

Funnily enough for me as a kid it was always TRU, W4K and David Jones that I wanted to look in for toys. The thought of DJs now haha.

[1AZRAEL1]

I used to hunt Grace Bros too. The good old days

[Dimi194]

:(

[DaptoDog]

While we're reminiscing I'm still amazed Toyworld is still open at Kiama. I remember about 30 years ago we had to go there to find Scattershot to complete the Technobots after my mum called around everywhere. While there are still toy sections of department stores for kids (and us adults!) it's just not the same as walking into a stand-alone toy shop.

[1AZRAEL1]

Standalone toy stores just aren't as profitable unfortunately. They don't have the luxury of having other items to subsidise their sales.

Speaking of Kiama Toyworld, I remember having to get Hursty to get FOC Soundwave and data discs from there I think. Somethin. And found WFC Soundwave at David Jones in Canberra many moons ago, only store I ever saw him in too

[Raider]

While we're reminiscing I'm still amazed Toyworld is still open at Kiama. I remember about 30 years ago we had to go there to find Scattershot to complete the Technobots after my mum called around everywhere. While there are still toy sections of department stores for kids (and us adults!) it's just not the same as walking into a stand-alone toy shop.

We used to have a Toyworld (I think it was Toyworld) in Cronulla Mall many years ago. They used to have this huge electric Ferrari that was hanging over the top of the store as you walk in. I still remember saving my pocket money and buying the stunticons and protectobots from there as well as my grandma buying me Soundwave for a birthday one year.

[dirge]

We used to have a Toyworld (I think it was Toyworld) in Cronulla Mall many years ago.

Same store is actually still trading. What was Toyworld Cronulla is now Fraser Cycle's at Taren Point. They hardly order Transformers though, now.