OT: Toys R Us Files for Chap 11 Bankruptcy
While the company claims it will continue to operate 1600 stores, bankruptcy filings tend to be the end of the road for retailers. The erosion of the underlying fundamentals of the business won't be changed through the BK process.
(CNNMoney) Toys 'R' Us is filing for bankruptcy protection.
The toy retailer has filed for Chapter 11 bankruptcy protection in the United States, it said in a statement on Monday. Meanwhile, it said its Canadian subsidiary will "seek protection in parallel proceedings" in the Ontario Superior Court of Justice.
The company said it will use the proceedings to restructure its $5 billion outstanding debt.
Despite the bankruptcy filing, Toys 'R' Us said its 1,600 stores worldwide continue to operate. The filing will not include around 255 Toys 'R' Us stores outside the U.S. and Canada.
The New Jersey-based retailer has nearly 65,000 employees globally."
September 19th, 2017 at 12:13 PM ^
September 19th, 2017 at 8:33 AM ^
This comes as no suprise. I ordered some stuff from Toys-r-us website last year and they doubled my order and only charged me for the original order. They literally sent me 2 of everything I ordered! I tried to return the double items in store and they couldn't find a record of my transaction online. Recently I checked out their website to order things for my sons birthday and 90% of their online catalog was out of stock.
I don't see why they don't revamp their stores and focus on things that pull in kids besides selling toys. Make it an experience you only get from Toys-R-us, monthly displays of toys in action, play area, hire cosplay folks to walk around the store in toy costumes.
September 19th, 2017 at 9:01 AM ^
Dave did not like the name. Out of bankrupcy they will be renamed "We B Toys"
September 19th, 2017 at 9:36 AM ^
September 19th, 2017 at 12:18 PM ^
September 19th, 2017 at 9:37 AM ^
“Today marks the dawn of a new era at Toys R Us, where we expect that the financial constraints that have held us back will be addressed in a lasting and effective way,” Dave Brandon, the company’s chairman and chief executive, said in a news release.
Yeah, right. 210 days from now they will be gone.
September 19th, 2017 at 10:38 AM ^
September 19th, 2017 at 11:11 AM ^
who takes on 400 million in debt with a pay back date all at one time without the revenue streams to support it? Worse yet who authorizes that debt?
This is another classic Wall Street shakedown, leaving someone else holding the bag.
September 19th, 2017 at 11:34 AM ^
Once upon a time a group of talented people came together to dream, and to design and build a company like no other. Toys "R" Us is the culmination of the work of those gifted people who spent years creating a place the Brandon's could live... Happily Ever After with their multi-million dollar post-bankruptcy windfall.
September 19th, 2017 at 11:41 AM ^
way to go Dave. where is the next place you can screw it up. pizza, michigan and toy r us. how about Washington
September 19th, 2017 at 11:45 AM ^
ambassador to north korea?
September 19th, 2017 at 11:53 AM ^
Dave Brandon is a complete ass.
Dave Brandon is not at fault here.
September 19th, 2017 at 12:08 PM ^
September 19th, 2017 at 12:28 PM ^
Mr. Brandon. Ain't nothing he can't break!
September 19th, 2017 at 2:00 PM ^
Look for Dave to Fire Geoffrey next.
September 19th, 2017 at 9:46 PM ^
Dave knows how to be a better Giraffe...........he sat in on those film sessions of Mutual Of Omaha's Wild Kingdom. DKB. Dave Knows Best.
September 19th, 2017 at 3:34 PM ^
Retailers also have major issues because in 2005 the bankruptcy code was amended to severely curtail the window for debtors to reject leases (from basically anytime during the proceedings to only in the first 90 days, with certain extensions subject to landlord consent). This makes it essential that a debtor has a complete plan for lease rejections, agreed lease renegotiations, etc. well in advance of actually filing.
Retailers who file Chap11 without a fully baked real estate strategy frequently end up liquidating when they're unable to reach agreement with their various landlords. Circuit City is a prime example.
September 19th, 2017 at 9:45 PM ^
Well, looking back, spending $300 million on researching wether or not they should turn the backwards 'R' in the logo around may have been a mistake.
Dave will get another great shot at another high-paying gig. It's amazing and infuriating.
Only thing he was acatually good at was junk mail - and that is so Dave Brandon, isn't it?