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Toysrus Successfully Files for Chapter 11 Protection

Transformers News: Toysrus Successfully Files for Chapter 11 Protection

Tuesday, September 19th, 2017 10:00AM CDT

Category: Company News
Posted by: Tyrannacon   Views: 16,230

Topic Options: View Discussion · Sign in or Join to reply

You may remember our previous story about Toys R Us shipments by other companies being cut, but the latest in the news about Toys R Us is that they have successfully ]filed Chapter 11 Bankruptcy Protection from CNBC News. Does this mean that stores will be closing? In short, no.

The company said it will continue to operate as usual its approximately 1,600 Toy R Us and Babies R Us stores around the world. The company's operations outside of the U.S. and Canada are not part of the protections proceedings, it said.


We will continue to post more developments about this as they become available.
Credit(s): CNBC

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Re: Toysrus Successfully Files for Chapter 11 Protection (1911845)
Posted by WreckerJack on September 19th, 2017 @ 2:25pm CDT
Didn't the same thing happen to Macy's? Upon looking up on wikipedia it gives a history about what happened to them. It seems if Macy's can survive, then TRU has a shot. Though I think a lot of changes need to be made - namely pricing. Not many people make a special trip to the toy store, and especially not when the toy store costs more than it's competitors. Even the free shipping benchmark is higher on TRU's site which puts them at a huge disadvantage to sites like amazon.
Re: Toysrus Successfully Files for Chapter 11 Protection (1911849)
Posted by fenrir72 on September 19th, 2017 @ 2:53pm CDT
Tyrannacon wrote:You may remember our previous story about Toys R Us shipments by other companies being cut, but the latest in the news about Toys R Us is that they have successfully ]filed Chapter 11 Bankruptcy Protection from CNBC News. Does this mean that stores will be closing? In short, no.

The company said it will continue to operate as usual its approximately 1,600 Toy R Us and Babies R Us stores around the world. The company's operations outside of the U.S. and Canada are not part of the protections proceedings, it said.


We will continue to post more developments about this as they become available.


Chapter 11 means the company's assets won't be cannibalized by the creditors..........yet! Will they close? Unless they can secure more loans(would you loan them given their financial stability?).............also,will you continue to sell your wares as consignment to a bankrupt retailer? That's the diplomatic answer of Hasbro (as in yes when in reality it is a NOT!)
Re: Toysrus Successfully Files for Chapter 11 Protection (1911885)
Posted by william-james88 on September 19th, 2017 @ 8:10pm CDT
WreckerJack wrote:Not many people make a special trip to the toy store, and especially not when the toy store costs more than it's competitors. Even the free shipping benchmark is higher on TRU's site which puts them at a huge disadvantage to sites like amazon.

Yeah but thats all irrelevant when TRU has a very generous price match guarantee. They price match with Amazon so there is never a time when going to TRU should cost you more if you have solid proof of it selling for less elsewhere.

Of course there are asshole employees and not everyone likes the hassel of price matching, but complaining about higher prices when they will price match doesnt make much sense to me. Due to the price match policy I have bought 90% of my toys there and never ever paid more that I would have for the exact same product at a different retailer.
Re: Toysrus Successfully Files for Chapter 11 Protection (1911886)
Posted by BATTLEMASTER IIC on September 19th, 2017 @ 8:22pm CDT
I actually didn't know that TRU had a price matching policy. What discourages me from shopping at my local TRU is that they always have a lousy stock of Transformers figures, whereas my local Walmart and Target stores have a better available selection. I think about 66% of the time, though, I buy my figures on the internet, and the rest at Walmart and Target.

Plus, I suspect there are TRU employees who stash some of the Transformers stock. I got real suspicious when all I saw were CW Armada Megatron and never the G1-styled version of the character.

With that being said, if TRU went under, I wouldn't miss it. I can get my Transformers elsewhere and there is a Lego shop near by :)
Re: Toysrus Successfully Files for Chapter 11 Protection (1911889)
Posted by william-james88 on September 19th, 2017 @ 8:44pm CDT
BATTLEMASTER IIC wrote:I actually didn't know that TRU had a price matching policy. What discourages me from shopping at my local TRU is that they always have a lousy stock of Transformers figures, whereas my local Walmart and Target stores have a better available selection. I think about 66% of the time, though, I buy my figures on the internet, and the rest at Walmart and Target.

Plus, I suspect there are TRU employees who stash some of the Transformers stock. I got real suspicious when all I saw were CW Armada Megatron and never the G1-styled version of the character.

With that being said, if TRU went under, I wouldn't miss it. I can get my Transformers elsewhere and there is a Lego shop near by :)

Oh I totally hear you and those are definitely good arguments to avoid TRU. I was just commenting on the price part since I see that argument a lot and its the most easily fixed.

By the way, if ever you do se something at TRU taht interests you and you have proof its cheaper elsewhere, here is the policy:

https://www.toysrus.com/cobrand/service ... -guarantee

We Price Match for these competitors and their websites:

Amazon

Baby Depot

Barnes & Noble

Best Buy

buybuy BABY

diapers.com

Fred Meyer

GameStop

Hobby Lobby

JCPenney

Kmart

Kohl's

LEGO

Macy's

Meijer

Michael's

Sears

Target

Walmart

YoYo.com
Re: Toysrus Successfully Files for Chapter 11 Protection (1911903)
Posted by william-james88 on September 19th, 2017 @ 9:59pm CDT
Toysrus has now posted some documents on their website giving specific details of what we can expect from them filing for bankruptcy protection earlier this week. They do not shy away from giving a clear number of their current debt of 5 Billion dollars and even provide an FAQ which covers everything a customer may need to know, from toy availalibility to the Toysrus credit card. In short, everything remains the same as before through the holiday season. We knew that Hasbro would be sending them all their holiday orders and now we know that Toysrus will be putting all these on the shelves throughout the holidays with no stores closing for now. We have quoted the three following articles below:

Restructuring Information

Customer FAQ

A Message to Our Customers

At Toys“R”Us we are undertaking a financial restructuring to ensure the iconic Toys“R”Us and Babies“R”Us brands live on for many generations. For all of our customers, distributors, vendors and talented team members –Toys“R”Us and Babies“R”Us stores around the world are open and web stores are operating normally. The things customers like the most will not be affected. We continue to offer amazing new seasonal products and great customer service, just as we always have. In addition, Toys“R”Us is committed to working with our vendors to help ensure that inventory levels are maintained and products continue to be delivered in a timely fashion.
To achieve our financial objectives, Toys“R”Us and some of our U.S. subsidiaries and our Canadian subsidiary proactively and voluntarily filed for Chapter 11 of the Bankruptcy Code in the U.S. Our Canadian subsidiary also began parallel proceedings under the Companies’ Creditors Arrangement Act in Canada. 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.
We are confident that this financial restructuring is the best path forward to ensure that Toys“R”Us can invest in our business, continue to improve our customers’ experience and strengthen our competitive position.

1. Why did Toys“R”Us take this action now?
• Our business and overall ability to win have been significantly impacted by the costs associated with the $5 billion of debt on our balance sheet. This debt has held us back from making the investments we need to compete effectively in what has become an increasingly challenging and rapidly changing retail marketplace worldwide.
• After much consideration, the Company and certain of our subsidiaries proactively and voluntarily filed for Chapter 11 in the U.S. and commenced parallel proceedings under CCAA in Canada.
• The Company is taking this action in order to implement a financial restructuring as a deliberate and decisive step in the process to put us on a successful track for the future.
• Through this process, we expect to restructure our long-term debt and use these resources to reinvest in our business, continue to improve the customer experience in our stores and online and strengthen our competitive position.
• The Company’s operations outside of the U.S. and Canada, which include operations in Asia, Australia and Europe, are not part of the Chapter 11 filings or CCAA proceedings and are not subject to the Court-supervised processes.
2. Will Toys“R”Us continue normal operations?
• Yes. Our operations are continuing as usual. The Company’s stores around the world are open and our web stores and other online platforms will remain up and running, providing customers great service and a curated assortment of merchandise in the toy and baby categories.
• Through this process, we expect to restructure our long-term debt and use those resources to reinvest in our business, improve the customer experience and strengthen our competitive position.
3. Is my local Toys“R”Us open?
• Our Toys“R”Us and Babies“R”Us stores around the world are open, and you can also continue to shop online on our newly launched www.toysrus.com and www.babiesrus.com web stores.
• We are continuing to offer the best quality, value and selection, and our knowledgeable team members are working to provide customers a memorable shopping experience.
4. How will this process affect customers?
• We are serving customers as usual. Our stores around the world are open and our web stores and other online platforms will remain up and running, providing customers with great service and a curated assortment of merchandise in the toy and baby categories.
• We expect to continue honoring return policies, warranties, gift cards and layaway programs. Customers should expect our loyalty programs, including Rewards“R”Us, the Toys”R”Us Wish List, Geoffrey’s Birthday Club and the Babies“R”Us Registry in the U.S., to continue as normal in their current forms. International customer programs will continue as usual as well.
• Customers can continue to count on outstanding service whenever, wherever and however they want to shop with us.
5. Does this affect customer programs, including Rewards“R”Us, Babies“R”Us Registry and
layaway programs?
• We expect to continue honoring return policies, warranties, gift cards and layaway programs. Customers should expect our loyalty programs, including Rewards“R”Us, the Toys”R”Us Wish List, Geoffrey’s Birthday Club and the Babies“R”Us Registry, to continue as normal in their current forms.
6. Will your stores continue to be stocked as normal during this process?
• Toys“R”Us continues to offer the hottest toys this holiday season, along with an outstanding shopping experience.
• We are well stocked as we prepare for the holiday season and are excited about all of our upcoming in-store events.
7. Will Toys“R”Us and Babies“R”Us continue to run their typical sales and promotions?
• Yes. We expect to continue operating our stores, webstores and other online platforms as usual during this process.
• This includes the continuation of our typical sales and promotions.
8. Can I still use my Rewards“R”Us points?
• Yes. Customers should expect our loyalty programs, including Rewards“R”Us, to continue as normal in their current forms.
• We encourage you to continue earning and using your points at our stores or online at toysrus.com or babiesrus.com.
9. Can I still use my “R”Us Credit Card?
• Yes. Your “R”Us Credit Card will continue to be accepted.
• We encourage you to use your card to keep earnings Reward Points.
10. Can I still use my gift card?
• Yes. You can continue to use your gift cards in our stores or online.
• We are focused on continuing to provide the best quality, value and selection in the toy and baby categories and outstanding service whenever, wherever and however you choose to shop with us this season and beyond.
11. Does this affect your return policies or warranties?
• No. We fully expect to continue honoring return policies and warranties.
• You can continue to count on a world-class shopping experience and outstanding service whenever, wherever and however you choose to shop with us this season.
12. How can I obtain more information?
• For questions about products, warranties or rewards, customers in the U.S. should continue to contact our Customer Service Department at 1 (800) TOYSRUS or 1 (800) 869-7787 between the hours of 8 AM and 11 PM ET. Our international customers can contact their local Customer Service teams as usual.
• If customers have questions regarding the financial restructuring process, they can visit other pages on this restructuring website.


To Our Customers,
Since 1948, Toys“R”Us has served kids and families around the world by offering great service and a wide assortment of toy and baby products. Nearly 70 years later, that commitment to our customers remains stronger than ever as we work to be champions of play and a best friend to parents everywhere. We want you to have an outstanding experience whenever, wherever and however you choose to shop with us and this holiday season is no exception. We have a number of exciting initiatives underway including improvements to our stores and loyalty program, and we are leveraging technology to bring our physical stores to life. We’ve also just recently launched a new web store to make it even easier to shop with us.

We are also working to strengthen our financial position. The Company, some of our U.S. subsidiaries and our Canadian subsidiary proactively and voluntarily filed for Chapter 11 in the U.S. and began parallel reorganization proceedings in Canada. The Company’s operations outside of the U.S. and Canada are not part of the Chapter 11 filing and CCAA proceedings. Through these important actions, we expect to restructure our long-term debt and instead use these resources to reinvest in our business, so that we can continue to improve your experience

in our stores and online and separate ourselves from our competitors in today’s rapidly changing retail landscape. What This Means for You: We Are Open for Business
• Our Toys“R”Us and Babies“R”Us stores around the world are open, and you can also continue to shop online on our newly launched www.toysrus.com and www.babiesrus.com web stores. Toys“R”Us continues to offer the hottest toys this holiday season, along with an outstanding shopping experience. We are preparing for the holiday season and are excited about the many events, new technology and features we’ll have in our stores and online.
• We fully expect our customer programs to continue as normal. We expect to continue honoring return policies, warranties, gift cards and layaway programs. Customers should expect our loyalty programs, including Rewards“R”Us, Geoffrey’s Birthday List and the Babies“R”Us Registry, to continue as normal in their current forms. International customer programs are expected to continue as usual as well.
• You can continue to count on a world-class shopping experience and outstanding service whenever, wherever and however you choose to shop with us this season and beyond.
As always, we thank you for your continued support and for shopping with us. If you have questions about this process, you can find FAQs and additional information on the restructuring page of our website at www.toysrusinc.com/restructuring.
For questions about products, warranties or rewards, please contact our Customer Service Department at (800) TOYSRUS or (800) 869-7787 between the hours of 8 AM and 11 PM ET.
We are confident that the steps we are taking will help ensure that Toys“R”Us will be the champion of play for kids everywhere and Babies“R”Us can be a best friend for parents when it comes to caring for their infants and babies.
We look forward to serving you this holiday season and beyond.
Re: Toysrus Successfully Files for Chapter 11 Protection (1911910)
Posted by Ultra Markus on September 19th, 2017 @ 10:27pm CDT
as long as they keep up their stock on current waves i would buy there as i pop in every now and then
but last several times has been pathetic as far as titan wars goes even taget and walmart in my area have a pathetic excuse for selection when it come to TFs! :BANG_HEAD: they make it hard not to buy online
Re: Toysrus Successfully Files for Chapter 11 Protection (1911947)
Posted by bengear on September 20th, 2017 @ 8:20am CDT
Not to get political...but why does Mitt Romney hate toys? First KB Toys, now Toys R Us. I really liked KB toys. :( Vulture capitalists can kiss my exhaust port.

The fact that Toys R Us is generally pretty pricey is beyond the point that it is a TOY STORE. Toys and games from wall to wall (and maybe some diapers on the babies r us side). Can you buy it on amazon? sure. Can you get it cheaper at walmart? probably. But the magic of being a kid and walking into a giant store for YOU (and not your parents most likely) is an awesome feeling.

Seeing a rather beloved institution fall under financial assault bums me out. Hopefully they survive relatively unscathed.
Re: Toysrus Successfully Files for Chapter 11 Protection (1912065)
Posted by WreckerJack on September 20th, 2017 @ 4:11pm CDT
bengear wrote:Not to get political...but why does Mitt Romney hate toys? First KB Toys, now Toys R Us. I really liked KB toys. :( Vulture capitalists can kiss my exhaust port.

The fact that Toys R Us is generally pretty pricey is beyond the point that it is a TOY STORE. Toys and games from wall to wall (and maybe some diapers on the babies r us side). Can you buy it on amazon? sure. Can you get it cheaper at walmart? probably. But the magic of being a kid and walking into a giant store for YOU (and not your parents most likely) is an awesome feeling.

Seeing a rather beloved institution fall under financial assault bums me out. Hopefully they survive relatively unscathed.


Because all politicians hate fun! :evil: :P

Sadly that awesome feeling doesn't make money. Like I said before people don't usually make special trips to toy shops and even so why pay more at TRU than other places. Yeah, it's fun to look but I'd rather save money or order online.

I think there has to be a way to make toy shops more profitable in the modern day. I remember as a kid going to TRU was awesome but it was also a social event. There were weekly events for pokemon and yugioh that kids would go to play, which was a way to get people inside stores.

When I think of this it reminds me of shopping malls and how those are also declining. in the 90's and 00's people would go to the mall to socialize. Often my group of friends would meet at the mall before catching our bus to see a concert. Now people seem to be less interested in hanging out at the malls so they don't go and spend money.

I watch a lot of Dan Bell's dead mall series and it makes me think about how there is a big change in the way we buy stuff. I'll admit that in my late 20's I just don't care about going to the mall and I don't know what is going to revive a lot of brick and mortar stores because I am not in touch with "what's cool" with young people. Even when I was a teen I just did what I liked to do and didn't follow trends.

I think what might help some brick and mortar stores is to have things that you may want to try before you buy. Clothing and shoes are something that are good to try on and inspect the quality of before purchasing. I think maybe toy shops could have some toys out of the box so people could try them out and that may encourage people to come and test them before buying. It would also help keep companies motivated to make quality products because some things you think are great till you get it out of the box.

william-james88 wrote:Yeah but thats all irrelevant when TRU has a very generous price match guarantee. They price match with Amazon so there is never a time when going to TRU should cost you more if you have solid proof of it selling for less elsewhere.

Of course there are asshole employees and not everyone likes the hassel of price matching, but complaining about higher prices when they will price match doesnt make much sense to me. Due to the price match policy I have bought 90% of my toys there and never ever paid more that I would have for the exact same product at a different retailer.


Indeed, but most people are probably not aware of this. I admit I even forget because it is a drive for me to get to the closest TRU. Factor in time and gas and its easier to just go to another store/order online.

Most of toy sales are probably from children and their parents - not collectors like us that are savvy to these things. I admit I complain their prices are high because it takes advantage of people that don't know and that does not bode well with me. (I know overhead but do people really care about that? Nope. We want our toys and we want them cheap as possible!)
Re: Toysrus Successfully Files for Chapter 11 Protection (1912090)
Posted by william-james88 on September 20th, 2017 @ 6:35pm CDT
WreckerJack wrote: I admit I complain their prices are high because it takes advantage of people that don't know and that does not bode well with me. (I know overhead but do people really care about that? Nope. We want our toys and we want them cheap as possible!)

Dont let it bother you because those same people know that prices are cheaper elsewhere. Those same people also shop at walmart/amazon so they can see what other prices are out there. Parents are even more aware of costs due to all expenses a kid can be. So most who buy from TRU at full price are fully aware of what they are doing and do it out of convenience or because they cant find it elsewhere. And the savy parents know of the price match, it was my wife who told it to me in the first place since she was buying baby related stuff.

So dont let it bother you, parents are as savy if not more than the average collector. They NEED to save that buck.
Re: Toysrus Successfully Files for Chapter 11 Protection (1912125)
Posted by fenrir72 on September 21st, 2017 @ 12:05am CDT
Ultra Markus wrote:as long as they keep up their stock on current waves i would buy there as i pop in every now and then
but last several times has been pathetic as far as titan wars goes even taget and walmart in my area have a pathetic excuse for selection when it come to TFs! :BANG_HEAD: they make it hard not to buy online


TRU is at present trying to get in a cash infusion. Don't be expecting them getting new stocks until that happens.

If you were the businessman or multinational firm like Hb, you don't ship blindly to a bankrupt entity unless you are sure ALL your stocks are paid for.

Worst come to worst, TRU may end up like Kenny Rogers Chicken. The name will be purchased by some investor from which the business model would continue.

Kenny R was like THE fast food with home style eating back in the 80s. When it went under, a Malaysian Chinese investor bought the name and sold franchises all over Asia. So TRU overseas may end up like that with one Kenny R existing in California. There might be just one or two TRU left and places like Canada, well the name would be sold to the highest bidder.
Re: Toysrus Successfully Files for Chapter 11 Protection (1912127)
Posted by fenrir72 on September 21st, 2017 @ 12:16am CDT
bengear wrote:Not to get political...but why does Mitt Romney hate toys? First KB Toys, now Toys R Us. I really liked KB toys. :( Vulture capitalists can kiss my exhaust port.

The fact that Toys R Us is generally pretty pricey is beyond the point that it is a TOY STORE. Toys and games from wall to wall (and maybe some diapers on the babies r us side). Can you buy it on amazon? sure. Can you get it cheaper at walmart? probably. But the magic of being a kid and walking into a giant store for YOU (and not your parents most likely) is an awesome feeling.

Seeing a rather beloved institution fall under financial assault bums me out. Hopefully they survive relatively unscathed.


Read my previous posts. Capitalism is survival of the fittest. Mittens and his type may get a bad rep but they ARE in it for the Money! TRU is now forced to deal with a different business climate from like 30 years ago. Online unfortunately has all but killed the mom and pop style stores. Malls killed them and TRU models thrived for a while but Malls are also in the dying now.

Also, sales are NO big help when the stores bought their stocks at a much higher pricing range. That's just it. Nothing sinister.

If you can't pay your creditors, you get repossessed. Bankruptcy filing is a lifeline until they get a sucker, willing investor who can extend credit. They, the investor would be doing it for PROFIT and not nostalgia (well maybe some who might have some for TRU in their childhood). Though more likely, investors with fat wallets would be those from the PRoC. And those same investors got burned with Paramount with their recent box office flops (TLK is a Prime, no pun intended) example.
Re: Toysrus Successfully Files for Chapter 11 Protection (1912130)
Posted by fenrir72 on September 21st, 2017 @ 12:23am CDT
EunuchRon wrote:Yeah... inventory tax on that much unmoved product would totally burn. :(


Remember how some "geniuses" here said Hb doesn't get hurt with the SALES? Hence why I keep encouraging fellow collector to support buying at full retail price. Sure Hb stock are already "paid" but if the point of sale by Hb (retailers like TRU) die, what then? TRU et al dies.

Sure there's online for Hb but online does indeed have their limitations. Heck, maybe someday, we would no longer have the pleasure to actually eyeball and hold the product when we realtime window shop and just do the click and pay thingie.

But the consequences will be felt eventually.
Re: Toysrus Successfully Files for Chapter 11 Protection (1912225)
Posted by WreckerJack on September 21st, 2017 @ 4:48pm CDT
william-james88 wrote:So dont let it bother you, parents are as savy if not more than the average collector. They NEED to save that buck.


Never would have though so, but then again I don't know any parents in my generation (well besides you). I would have imagined that parents were too busy to think to look up such things between all the things they need to do to care for a kid and themselves. I suppose that is the difference between my parent's generation and the current one.
Re: Toysrus Successfully Files for Chapter 11 Protection (1912328)
Posted by Stealth Claw on September 22nd, 2017 @ 9:59am CDT
I really hope all goes well for Toy R us, I love going their and would hate to lose them, also iv never seen toy r us with higher prices their the same prices at Wall mart, however I'm from ON, Canadian, so my only options to shop transformers in person are tru or wm, and tru always has a better verity and options than wm, so for us Canadian fans I hope tru stays open in the long run at least here.
Re: Toysrus Successfully Files for Chapter 11 Protection (1912525)
Posted by william-james88 on September 23rd, 2017 @ 8:40pm CDT
While it came to no one's shock that Toysrus was close to bankruptcy in the US, due to all the debt woes since the early 00's, Canadians were left puzzled by Toysrus Canada being the only subsidiary to also file for bankruptcy protection. The confusion came from the fact that Toysrus Canada was known to be autonomous from its parent company, along with having less distribution woes, only 1 major competitor, along with lots of stock and product turnaround making it a haven for any toy enthusiast (all of these later attributes are mainly due to the market only being one tenth the size of the US market, and smaller markets are easier to manage).

Image

Well, an article from the Financial Post confirms how healthy Toysrus Canada is.

The profitable Toys Canada “operates as a relatively autonomous business unit and has achieved strong financial and operational performance in recent years,” the company said in court filings. It is cash-flow positive, has had compounded annual revenue growth of 5 per cent in the past three years and has almost doubled net earnings in that time, the filings said, and it wants to keep all of its stores open and operating.


However, and here is the kicker, the article also confirms how it is linked to its US parent:

Indeed, the Canadian unit has been sending surplus cash from its operations to support its U.S. parent’s cash flow needs, making $101 million in unsecured inter-company loans to the troubled U.S. division since 2016.


So yes, while Toysrus Canada has been doing so well that it has surplus, this $101M loan is unsecured and due to Toysrus declaring bankruptcy, there is no indication that the Canadian operations will ever see that money again. Just to give any reader an idea of how massive this amount is for Toysrus Canada, this $101M unsecured loan is a quarter the size of the $400M debt coming to term soon for TRU USA which caused the later to file for Chapter 11. And this massive $101M amount was given from a subsidiary that only has 10% of the market the US has. This explains how a company which would have been autonomous is instead very much linked financially and how Toysrus going down is dragging the subsidiary down with it.

If you are interested in legal talk, the full article has you covered and you can find it here.
Re: Toysrus Successfully Files for Chapter 11 Protection (1912528)
Posted by Ig89ninja on September 23rd, 2017 @ 9:04pm CDT
that figure variety!

Why cant the US have that variety!?! :-(
Re: Toysrus Successfully Files for Chapter 11 Protection (1912534)
Posted by shajaki on September 23rd, 2017 @ 9:12pm CDT
Ig89ninja wrote:that figure variety!

Why cant the US have that variety!?! :-(
There's 3 TRU's in my city, and none of them look like that >:oP

This makes me wonder... could TRU USA disappear while TRU Canada remains? And how are other TRU's fairing? I don't even know how many countries they're in, but I know they're in Japan...
Re: Toysrus Successfully Files for Chapter 11 Protection (1912540)
Posted by TF-fan kev777 on September 23rd, 2017 @ 9:49pm CDT
shajaki wrote:
Ig89ninja wrote:that figure variety!

Why cant the US have that variety!?! :-(
There's 3 TRU's in my city, and none of them look like that >:oP

This makes me wonder... could TRU USA disappear while TRU Canada remains? And how are other TRU's fairing? I don't even know how many countries they're in, but I know they're in Japan...


I've been to TRU's in Malaysia, Korea, Germany, UAE-Dubai as well as Japan and Canada (Yeah, I travel for work, a nice perk for hunting TF's. It will be interesting to see how the TRU's in other countries fare.
Re: Toysrus Successfully Files for Chapter 11 Protection (1912542)
Posted by No One on September 23rd, 2017 @ 9:54pm CDT
Not ONE toy store in Dubai EVER has new Transformers.
Re: Toysrus Successfully Files for Chapter 11 Protection (1912544)
Posted by shajaki on September 23rd, 2017 @ 10:00pm CDT
TF-fan kev777 wrote:
shajaki wrote:
Ig89ninja wrote:that figure variety!

Why cant the US have that variety!?! :-(
There's 3 TRU's in my city, and none of them look like that >:oP

This makes me wonder... could TRU USA disappear while TRU Canada remains? And how are other TRU's fairing? I don't even know how many countries they're in, but I know they're in Japan...


I've been to TRU's in Malaysia, Korea, Germany, UAE-Dubai as well as Japan and Canada (Yeah, I travel for work, a nice perk for hunting TF's. It will be interesting to see how the TRU's in other countries fare.
So... is TRU USA the only one in trouble then?
Re: Toysrus Successfully Files for Chapter 11 Protection (1912549)
Posted by Jelze Bunnycat on September 23rd, 2017 @ 10:20pm CDT
shajaki wrote:
TF-fan kev777 wrote:
shajaki wrote:
Ig89ninja wrote:that figure variety!

Why cant the US have that variety!?! :-(
There's 3 TRU's in my city, and none of them look like that >:oP

This makes me wonder... could TRU USA disappear while TRU Canada remains? And how are other TRU's fairing? I don't even know how many countries they're in, but I know they're in Japan...


I've been to TRU's in Malaysia, Korea, Germany, UAE-Dubai as well as Japan and Canada (Yeah, I travel for work, a nice perk for hunting TF's. It will be interesting to see how the TRU's in other countries fare.
So... is TRU USA the only one in trouble then?


The details specify that any TRU outside of the US and Canada are not part of the Chapter 11 filings.
Re: Toysrus Successfully Files for Chapter 11 Protection (1912563)
Posted by Cybertronius Primus on September 24th, 2017 @ 3:35am CDT
The only new thing to come in near me was at a Smyth's over here in the UK and that was one step scorn, cogman and drift. Toys r us had a tiny new display piece with some of the new artwork on but that's about it for the past month.
Re: Toysrus Successfully Files for Chapter 11 Protection (1912566)
Posted by fenrir72 on September 24th, 2017 @ 4:55am CDT
william-james88 wrote:While it came to no one's shock that Toysrus was close to bankruptcy in the US, due to all the debt woes since the early 00's, Canadians were left puzzled by Toysrus Canada being the only subsidiary to also file for bankruptcy protection. The confusion came from the fact that Toysrus Canada was known to be autonomous from its parent company, along with having less distribution woes, only 1 major competitor, along with lots of stock and product turnaround making it a haven for any toy enthusiast (all of these later attributes are mainly due to the market only being one tenth the size of the US market, and smaller markets are easier to manage).

Image

Well, an article from the Financial Post confirms how healthy Toysrus Canada is.

The profitable Toys Canada “operates as a relatively autonomous business unit and has achieved strong financial and operational performance in recent years,” the company said in court filings. It is cash-flow positive, has had compounded annual revenue growth of 5 per cent in the past three years and has almost doubled net earnings in that time, the filings said, and it wants to keep all of its stores open and operating.


However, and here is the kicker, the article also confirms how it is linked to its US parent:

Indeed, the Canadian unit has been sending surplus cash from its operations to support its U.S. parent’s cash flow needs, making $101 million in unsecured inter-company loans to the troubled U.S. division since 2016.


So yes, while Toysrus Canada has been doing so well that it has surplus, this $101M loan is unsecured and due to Toysrus declaring bankruptcy, there is no indication that the Canadian operations will ever see that money again. Just to give any reader an idea of how massive this amount is for Toysrus Canada, this $101M unsecured loan is a quarter the size of the $400M debt coming to term soon for TRU USA which caused the later to file for Chapter 11. And this massive $101M amount was given from a subsidiary that only has 10% of the market the US has. This explains how a company which would have been autonomous is instead very much linked financially and how Toysrus going down is dragging the subsidiary down with it.

If you are interested in legal talk, the full article has you covered and you can find it here.


Filing Chapter 11 is just to protect the company's assets from being cannibalized by the creditors. For the time being.

Unless the debt is paid, the TRU name will just end as as the only part that might survive this fiasco.

And all those SALES just made matters worst. So gloat all you want (you know who you are), but Hb too will also be affected by this. For the good or bad, well...........I got online Takara shopping so no worries for me. 8-}
Re: Toysrus Successfully Files for Chapter 11 Protection (1912574)
Posted by OptimalOptimus2 on September 24th, 2017 @ 7:47am CDT
Ig89ninja wrote:that figure variety!

Why cant the US have that variety!?! :-(

I the future generations of kids in the United States are losing interests in toys. But what isn't losing profits are electronics. On multiple occurrences, I see parents giving their toddlers tablets and cellphones so they can watch YouTube or play games. These toddlers give so much attention to electronics, that they will lay down in the middle of the floor watching videos or playing games and it's up to you, the pedestrian to walk around them. So the most playful stimulus toddlers are now having is playing with electronics. This desire only increases as they get older because technology gives the most escape from reality than a plastic doll, a die cast car, or a fuzzy teddy bear.

So I think the biggest reason Toysrus and the toy aisles of Target, Walmart, Kmart, etc. are diminishing in the U.S. is due to consumers (children) lower demand for toys and higher demands for electronics and the latest technology.
Re: Toysrus Successfully Files for Chapter 11 Protection (1912579)
Posted by hurricane567 on September 24th, 2017 @ 9:33am CDT
My local US TRU has a 4 foot wide Transformers section. :-( [orders Misfire from Timmy's Toy Box/Amazon.com]
Re: Toysrus Successfully Files for Chapter 11 Protection (1912585)
Posted by fenrir72 on September 24th, 2017 @ 10:10am CDT
OptimalOptimus2 wrote:
Ig89ninja wrote:that figure variety!

Why cant the US have that variety!?! :-(

I the future generations of kids in the United States are losing interests in toys. But what isn't losing profits are electronics. On multiple occurrences, I see parents giving their toddlers tablets and cellphones so they can watch YouTube or play games. These toddlers give so much attention to electronics, that they will lay down in the middle of the floor watching videos or playing games and it's up to you, the pedestrian to walk around them. So the most playful stimulus toddlers are now having is playing with electronics. This desire only increases as they get older because technology gives the most escape from reality than a plastic doll, a die cast car, or a fuzzy teddy bear.

So I think the biggest reason Toysrus and the toy aisles of Target, Walmart, Kmart, etc. are diminishing in the U.S. is due to consumers (children) lower demand for toys and higher demands for electronics and the latest technology.


Astute observation. Btw, haven't you noticed that the reason those electronic stuff continue to sell well is because the manufacturer is getting their return on investments? Meaning, the product SELLS for FULL RETAIL!

The m0r0ns who don't buy in FULL RETAIL is basically condemning the product to extinction! Support the product at FULL COST and not on SALES!

They keep on saying that manufacturers like Hb isn't affected because they already sold the product to the retailer. Well they are CRETINS! If the retailer keeps on taking a HIT, then they will order LESS and LESS of the product resulting to the manufacturer pulling out or axing a particular product, in this case (the horror......Tfs). See what happened to the other planned box sets that were supposedly released got canned.

When TRU , who buys the products goes belly up, who fills up the vacuum? Where will Hb sell most of their wares then?

Tsk tsk tsk........
Re: Toysrus Successfully Files for Chapter 11 Protection (1912606)
Posted by william-james88 on September 24th, 2017 @ 1:48pm CDT
OptimalOptimus2 wrote:
Ig89ninja wrote:that figure variety!

Why cant the US have that variety!?! :-(

I the future generations of kids in the United States are losing interests in toys. But what isn't losing profits are electronics. On multiple occurrences, I see parents giving their toddlers tablets and cellphones so they can watch YouTube or play games. These toddlers give so much attention to electronics, that they will lay down in the middle of the floor watching videos or playing games and it's up to you, the pedestrian to walk around them. So the most playful stimulus toddlers are now having is playing with electronics. This desire only increases as they get older because technology gives the most escape from reality than a plastic doll, a die cast car, or a fuzzy teddy bear.

So I think the biggest reason Toysrus and the toy aisles of Target, Walmart, Kmart, etc. are diminishing in the U.S. is due to consumers (children) lower demand for toys and higher demands for electronics and the latest technology.


What I find cool about this is that technically kids havent changed but technology has. The reason we bought media related toys as kids was because we wanted to imitate what we saw for ourselves. Play with those characters. Well, this is still the main thing kids are doing today, but instead of doing it through toys, they can now actually become these same characters digitally and interact with whatever media based universe they like. Its pretty nuts how the pupularity of Lego Batman stems from the game and not the actual lego. To the point where they are now basing legos off the movie which is based on a game which was based on legos... all based on Batman ;) I conclude my thesis by saying that Batman rules. Oh wait, thats not at all what we were talking about.

shajaki wrote:
TF-fan kev777 wrote:
shajaki wrote:
Ig89ninja wrote:that figure variety!

Why cant the US have that variety!?! :-(
There's 3 TRU's in my city, and none of them look like that >:oP

This makes me wonder... could TRU USA disappear while TRU Canada remains? And how are other TRU's fairing? I don't even know how many countries they're in, but I know they're in Japan...


I've been to TRU's in Malaysia, Korea, Germany, UAE-Dubai as well as Japan and Canada (Yeah, I travel for work, a nice perk for hunting TF's. It will be interesting to see how the TRU's in other countries fare.
So... is TRU USA the only one in trouble then?


After reading the article I newsed, it seems Canada is the one that is ultra fucked. TRU USA wants to stay alive, at least long enough that the investors can flip it or sell off its debt. But to do that, they are sqweezing the still profitable TRU Canada dry. I didnt want to write it in case I misinterpreted (and thus left it to just quoting the expert) but if I read that article correctly it seems Toysrus corporate is making TRU canada take out loans they dont need (From USA banks, no less) to then loan over to the US business because the US needs it. So they are inundating TRU Canada with debt that TRU Canada because they themselves are not able to get more. Other TRUs are not touched right now aside from TRU corporate and TRU Canada. And if anyone goes down, it seems it will be TRU Canada, being sacrificed for the sake of taking all they can from it to make TRU USA survive. We are so fucked.
Re: Toysrus Successfully Files for Chapter 11 Protection (1912617)
Posted by shajaki on September 24th, 2017 @ 3:01pm CDT
william-james88 wrote:After reading the article I newsed, it seems Canada is the one that is ultra ****. TRU USA wants to stay alive, at least long enough that the investors can flip it or sell off its debt. But to do that, they are sqweezing the still profitable TRU Canada dry. I didnt want to write it in case I misinterpreted (and thus left it to just quoting the expert) but if I read that article correctly it seems Toysrus corporate is making TRU canada take out loans they dont need (From USA banks, no less) to then loan over to the US business because the US needs it. So they are inundating TRU Canada with debt that TRU Canada because they themselves are not able to get more. Other TRUs are not touched right now aside from TRU corporate and TRU Canada. And if anyone goes down, it seems it will be TRU Canada, being sacrificed for the sake of taking all they can from it to make TRU USA survive. We are so ****.
That's F***ed. And incredibly depressing.
Re: Toysrus Successfully Files for Chapter 11 Protection (1912626)
Posted by Epsilon Delta on September 24th, 2017 @ 4:54pm CDT
One of the problems I've seen is TRU increasing prices by 25% over the other stores. I usually price match to Walmart or Target, but sometimes Walmart online has wonky prices compared to in-store and Target says in-store only and they won't price match. Then I either try and find them in a Walmart/Target store, online, or just miss out. With, what I feel, is lower quality toys at higher prices, then marked up even more, I just don't want to drop the money. For TRU, it isn't just Transformers, it's all their products getting overpriced.
Re: Toysrus Successfully Files for Chapter 11 Protection (1912633)
Posted by Decepticon Stryker on September 24th, 2017 @ 6:32pm CDT
*Looks at news thumbnail*
...
*Looks at their local TRU shelf*

why-do-you-59c83d.jpg



Why is it that all the stores that sell Transformers near me have such a poor selection? I really hope they'll be able to pull $400 million though. TRU is one of my favorite stores. Looks like I'll need to increase my number of visits.
Re: Toysrus Successfully Files for Chapter 11 Protection (1912641)
Posted by william-james88 on September 24th, 2017 @ 7:56pm CDT
Decepticon Stryker wrote:*Looks at news thumbnail*
...
*Looks at their local TRU shelf*

why-do-you-59c83d.jpg



Why is it that all the stores that sell Transformers near me have such a poor selection? I really hope they'll be able to pull $400 million though. TRU is one of my favorite stores. Looks like I'll need to increase my number of visits.

:lol: But you know, its not just my TRU. While I do preffer showing pics of TRU since it look more vast and impressive, my local walmarts arent shabby either to the point where all is not lost if I only have Walmart to rely on in the future.

Image

Sadly though, Toysrus is the best at prices in my area due to Hasbro encouraging sales and coupons (as confirmed in another article), a practice they dont do with Walmart (since Walmart dont need no help). So while my Walmart would be a bad option, I would lose out on savings.
Re: Toysrus Successfully Files for Chapter 11 Protection (1912831)
Posted by Concept on September 25th, 2017 @ 4:31pm CDT
Didn't know the Canadian TRU was so profitable...we rarely see some of what is offered in the US. Many times they'll list items in advanced which aren't even in stock yet then never do come into stock and vanish off their website like they never even exist. This is what keeps me from TRU stores and I stick to Walmart. Plus I have to drive over an hour in either direction to go to a TRU to see if they actually have something in stock when the website doesn't list it. Very frustrating since TRU carries certain exclusives and we get jipped out of them. :(
Re: Toysrus Successfully Files for Chapter 11 Protection (1912878)
Posted by william-james88 on September 25th, 2017 @ 10:12pm CDT
Concept wrote:Didn't know the Canadian TRU was so profitable...we rarely see some of what is offered in the US.

Its mainly because there is very little competiton for toys in Canada.
Re: Toysrus Successfully Files for Chapter 11 Protection (1912884)
Posted by WreckerJack on September 25th, 2017 @ 10:45pm CDT


I think this video brings up a few good points about the state of their bankruptcy.
Re: Toysrus Successfully Files for Chapter 11 Protection (1913062)
Posted by shajaki on September 26th, 2017 @ 7:35pm CDT
I was hoping for some comments about the relation of TRU USA and Canada. It was rather simplistic.
Re: Toysrus Successfully Files for Chapter 11 Protection (1913063)
Posted by WreckerJack on September 26th, 2017 @ 7:52pm CDT
shajaki wrote:I was hoping for some comments about the relation of TRU USA and Canada. It was rather simplistic.

I have been wondering that too, I know it's harder to get toys online in Canada. Even tho I live in the states I am concerned for my Canadian pals. Wish I knew more about how that all works.
Re: Toysrus Successfully Files for Chapter 11 Protection (1913072)
Posted by william-james88 on September 26th, 2017 @ 8:31pm CDT
WreckerJack wrote:
shajaki wrote:I was hoping for some comments about the relation of TRU USA and Canada. It was rather simplistic.

I have been wondering that too, I know it's harder to get toys online in Canada. Even tho I live in the states I am concerned for my Canadian pals. Wish I knew more about how that all works.

You either get it cheap in a store or you pay through the ass online, thats how it works in canada.

And yeah, the video was just about the US segment. Shajaki, Canada is just tied to the US in the fact that the US owns it 100%. It runs independently but it is still owned by the US, just like how Takara is run independently from TOMY but TOMY owns all of it.

So if TRU USA says Jump, TRU Canada says how high. And right now TRU USA is indebting TRU Canada so that TRU Corporate can get more money. Yay.
Re: Toysrus Successfully Files for Chapter 11 Protection (1918396)
Posted by Bounti76 on October 25th, 2017 @ 6:01pm CDT
Fellow Seibertronian d-maximus_Prime has pointed us to an article on CNN's Money Section, regarding Toys "R" Us' bankruptcy, and how it's expected to affect toy sales this Christmas shopping season. Hasbro's CFO, Deborah Thomas, said that while 3rd quarter sales and profits were above forecasts, 4th quarter sales were now expected to be only slightly higher than last year, which is a significant drop from where they had been expected to be.

You can read the full article by clicking here. What do you think of this latest development? Discuss it in our forums below!
Re: Toysrus Successfully Files for Chapter 11 Protection (1918398)
Posted by Sunburnninja on October 25th, 2017 @ 7:08pm CDT
Im pretty sure their prices are taking part in this too, not just TRU
Re: Toysrus Successfully Files for Chapter 11 Protection (1918401)
Posted by Nightbeat339 on October 25th, 2017 @ 8:18pm CDT
Makes sense. My local TRU only has TLK wave 1, a couple of Triggerhappys and Twinfernos, and some random RiD figures. I've been waiting for them to get the latest waves of Titans Return for months now.
Re: Toysrus Successfully Files for Chapter 11 Protection (1918403)
Posted by Megatron Wolf on October 25th, 2017 @ 9:04pm CDT
Sunburnninja wrote:Im pretty sure their prices are taking part in this too, not just TRU


Took the words right out of my mouth, any lose they have is not just because of TRU. High prices alienating people from buying and terrible distribution making people who want to buy unable to is going to lose you money. Just hope its enough to get them to rethink what they're doing otherwise the lose is just going to get bigger.
Re: Toysrus Successfully Files for Chapter 11 Protection (1918416)
Posted by fenrir72 on October 25th, 2017 @ 10:56pm CDT
Simple answer. Either you buy at retail cost or the company goes belly up. What's so hard to digest with that? If them toys are too dang expensive, it shelf warms. Then the store stops ordering the items. Less orders, less drive for the manufacturers to R and D leading to the toyline's eventual demise.

Market forces PEOPLE!

Also, buyer preference now has convenience as a priority over the rush and tumble business model of shopping real time. Stores must adapt to these trends. Mall type models are really taking a hit on this.

For TRU, the confluence of these factors equals...................this!
Re: Toysrus Successfully Files for Chapter 11 Protection (1918436)
Posted by Carnivius_Prime on October 26th, 2017 @ 5:16am CDT
Nightbeat339 wrote:Makes sense. My local TRU only has TLK wave 1, a couple of Triggerhappys and Twinfernos, and some random RiD figures. I've been waiting for them to get the latest waves of Titans Return for months now.



Yeah my nearest Toys R Us only got in wave 4 of Titans Return a short while ago after shelfwarming previous waves for months and TLK stuff hasn't moved past wave 1 even after DVD of the film has been released. I bought my TLK Prime and Barricade from Toys R Us when Wave 1 first came out and would have bought more waves if they had been available to me. As it is I had to get Megatron and Sqweeks elsewhere and recently ordered W3 Bee and Cogman online too.
Re: Toysrus Successfully Files for Chapter 11 Protection (1918453)
Posted by william-james88 on October 26th, 2017 @ 9:23am CDT
Sunburnninja wrote:Im pretty sure their prices are taking part in this too, not just TRU

We cant be sure. The revenue lost by less items bought due to price increases could be offset by the increased revenue from higher prices.

Hasbro has economists and actuarial mathematicians to plan prices out, I dont think any of us are qualified to be sure of anything.
Re: Toysrus Successfully Files for Chapter 11 Protection (1918496)
Posted by Aimless Misfire on October 26th, 2017 @ 2:27pm CDT
Does anybody remember the Gulf war when the gas prices went through the roof? Hasbro blamed the skyrocketing prices of oil for their price hikes. Then the price of oil came back down but Hasbro never lowered their prices.

Now they keep raising the prices & can't even get their product into stores. And we're supposed to feel sorry for them. Oh boo hoo! :-(
Re: Toysrus Successfully Files for Chapter 11 Protection (1918499)
Posted by william-james88 on October 26th, 2017 @ 3:13pm CDT
Aimless Misfire wrote:Does anybody remember the Gulf war when the gas prices went through the roof? Hasbro blamed the skyrocketing prices of oil for their price hikes. Then the price of oil came back down but Hasbro never lowered their prices.

Now they keep raising the prices & can't even get their product into stores. And we're supposed to feel sorry for them. Oh boo hoo! :-(

I dont think anyone is feeling sorry for them. I feel sorry for the fans with the whole distribution woes. They make no sense for anyone. TRU and Walmart wouuld want wae 2 TLK to be in stores during summer when the film is hot so why not have them there. While it is not Hasbro`s problem to ensure that walamrt stocks the toys once they buy them I feel that its a worthwhile issue they should look into when their vedors make visits.
Re: Toysrus Successfully Files for Chapter 11 Protection (1918566)
Posted by RAR on October 27th, 2017 @ 1:17am CDT
Megatron Wolf wrote:
Sunburnninja wrote:Im pretty sure their prices are taking part in this too, not just TRU


Took the words right out of my mouth, any lose they have is not just because of TRU. High prices alienating people from buying and terrible distribution making people who want to buy unable to is going to lose you money. Just hope its enough to get them to rethink what they're doing otherwise the lose is just going to get bigger.


Indeed High Prices is exactly what is putting me off - it's a bit like the Superlink era where one could buy Japanese toys for less than American ones.

In that now One can buy some imports for less than you can buy something in a Supermarket or if not less such a small difference it's worth the extra couple of quid to get a "free" Headmaster.

For example I just bought a Legends Ravage for £14.00 and my Toymaster charges £13.99 for Legends class (when it has them) so I got a Headmaster for an extra 0.01 pence and a Ravage with a nicer sticker.

Even better for those who use Taibao. I can say in all honesty this is the least "Offical" Transformers I've bought in a given year this century and Last year was also the worst at the time.

Simply because I couldn't find ANYTHING. the last time it was this bad was one year during Prime when there was nothing for 9 months and then it all showed up at once in Home bargains at clearance prices.

I mean seriously even with a slightly reduced Pound value Deluxes prices going from £14.99 to £22.99 in a year is plain daft.

But just look at some of the Star Wars pricing too. They know that this kills lines as it has pretty much destroyed marvel Hasbro toys across Europe.

But the real insult isn't just the odd nature of the pricing ( A deluxe costs nearly the same as a Voyager and nearly the same as that Rescue Bots Bumblebee Dragon with the two dragon Minicons too).

Some people have seen £65.00 Leader class prices in the UK - which is quite obviously idiotic. It's a shame really as I was really enjoying Titans Returns until the prices went nuts and the availability vanished.
Re: Toysrus Successfully Files for Chapter 11 Protection (1918588)
Posted by Rated X on October 27th, 2017 @ 8:47am CDT
Get rid of Babies are Us and stop trying to compete with walmart in baby supplies. Stick to what put you on the map in the first place...toys. Problem solved.
Re: Toysrus Successfully Files for Chapter 11 Protection (1918648)
Posted by william-james88 on October 27th, 2017 @ 3:50pm CDT
If Toys"r"us sells Toys, what does Babies"r"us sell?
:D

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