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Thread: ToysRUs UK & US bankruptcy & closure

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  1. #1
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    Default ToysRUs UK & US bankruptcy & closure

    Came across this piece of news

    https://www.nst.com.my/business/2017...iling#cxrecs_s



    Your take on this fellow forumers

  2. #2
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    TRU in America seems to be a corporation that loves to use the bankruptcy laws to deal with their debts, as they've done this before... which lead to a restructure and closing down of some stores in America (and converting a lot of them to purely BabiesRUs stores, which was more profitable to them).
    It shouldn't affect us here though, as our own success or failure will determine its future here.... as can be seen by the recent opening of several stores (and plans to open more at some of the old Masters Hardware locations), after almost 2 decades of stagnation and closing down of some stores here.
    Their prices and product distribution polices are still outdated and work against them, but it seems that the current model is working "enough" for them to stick with it and be able to risk opening more stores.

  3. #3
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    It's silly how TRU only seem to focus on surviving rather than thriving.

  4. #4
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    Quote Originally Posted by GoktimusPrime View Post
    It's silly how TRU only seem to focus on surviving rather than thriving.
    Amazon.com is killing them, and most other retail in the US. TRU's days in the US are numbered and they are one of many in the same situation.

    When 64% of the US population has Amazon Prime which gives them free 2 day shipping on top of Amazon's low prices there's little chance for other retailers.

  5. #5
    drifand is offline Rank 6 - Dedicated Member
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    Partial fault lies between bringing in toys for older kids such as adults is lacking. The range of toys are limited, and to me a toy store that sells toys needs to be bigger than average BigW etc....

    I was in US 5 years ago and their Toyrus didn't feel big nor wowed me.

    Very sad, we got a company going under, but we have crap business retailer not going under
    Last edited by drifand; 19th September 2017 at 01:17 PM.

  6. #6
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    Toys r us files for voluntary chapter 11 bankruptcy
    http://news.tfw2005.com/2017/09/19/t...ons-u-s-349225

  7. #7
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    (disclaimer - I'm not an accountant, or have any training/qualifications on this)... but this shouldn't directly affect ToysRUs in other countries like here... and bankruptcy (protection) in America is something businesses over there appear to be able to do as a way to keep operating, because they believe they have profit potential beyond some short-term debts that are due soon. (even the billionaire Trump has had his businesses go through bankruptcy at least three times in the past, to deal with some debts, without losing everything).
    I think we'd only need to worry if the US business goes into administration or have their creditors/investors find out that they have long term forecasts of zero profit potential, and petition to have the business sold off or shut down (if the debts outweigh its assets).
    And even if that worst case scenario happens, I just couldn't imagine them shutting down their businesses in all those other countries they are in, who are obviously still profitable, or else the US business would have shut them down by now.

    From the press release...

    The Company’s operations outside of the U.S. and Canada, including its approximately 255 licensed stores and joint venture partnership in Asia, which are separate entities, are not part of the Chapter 11 filing and CCAA proceedings.
    The Company’s approximately 1,600 Toys“R”Us and Babies“R”Us stores around the world – the vast majority of which are profitable – are continuing to operate as usual,
    The downside though, is it will probably mean no more TRU exclusives from Hasbro during this time, as TRU are likely to trim down their inventory... and are prioritising their investor debts over their supplier debts (leading to some suppliers cutting back on sending new product until they pay for what they have already received - suppliers can often allow up to 90 days for payment, particularly for their bigger customers).

    I think a wait-and-see approach is best for this situation... and my fingers are firmly crossed that this doesn't lead to a full collapse of the global franchise, because aside from their high prices, TRU here are the best at price-matching of all our toy retailers (and personally - the Ocean Terminal TRU in Hong Kong, is in my opinion, the best toy store in the world for current Transformers toys, and if it shut down, it would be a big loss on my future trips over there)

  8. #8
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    ^ I never realised TRU licensed their name out for foreign companies to use. I wonder who owns the Australian stores?

  9. #9
    Jellico is offline Rank 6 - Dedicated Member
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    Default Toys 'R' Us Australia's future

    It showed up in the media today. Two views

    Business as usual
    http://www.abc.net.au/news/2018-03-1...-usual/9552844


    And good for Westfarmers
    http://www.afr.com/business/retail/w...0180315-h0xid5


    The big one I took from the AFR page.

    "US chief executive, David Brandon, was quoted overnight saying the Australian operations and those in France, Spain and Poland were likely to go into liquidation."

  10. #10
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    We're already discussing the situation in this thread.

    http://www.otca.com.au/boards/showthread.php?t=24757

    Probably worth bringing the existing thread up to the news section.

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