The Energon Pub

[Emerje]

The only toy I know I got from TRU for sure as a kid was G1 Brawl (my brother got Blast Off). That's it. Outside of commercials the place just wasn't part of my childhood. My parents would rather buy toys locally at Kmart or Zayer/Ames than go 70+ miles to TRU. Even if we went to one of the two in the state that are both next to major malls, they weren't going to take me to a store they weren't interested in going to, not when there was a KB right inside the mall. As you can imagine I spent significantly more time at KB than TRU, I even had one locally for a short time, it closed not long after Machine Wars came out so those were the last figures I bought from that store in 1997.

KB closing in general was much more devastating to me, I bought a ton of stuff from them and their 3/$10 bins. Since my only real experience with TRU was after I was 16 and working (and could convince my brother to drive me) and most of this experience was nothing but disappointment, I really can't say I'm going to miss them.

Emerje

[chuckdawg1999]

I don't know if this will happen but I've heard that with the liquidation TRUs might close without notice and without going out of business sales.

[tmthor]

I don't know if this will happen but I've heard that with the liquidation TRUs might close without notice and without going out of business sales.

I have heard some may just close but the logistics of shipping product around is expensive so I doubt that it will happen that way

[tmthor]

I take that back friends of mine have just told me alot of the shelves are empty in the tf area all that was there was the exclusives and movie lines ....and the neca/McFarlane area was devoid of anything other than old stuff that they have had for years...and the dolls and wrestling areas were pretty much empty too. But look on the bright side they told me they had TONs of that interactive star wars stuff still at full price...and a whole shelf mabey 6ft and 5 shelves high completely filled with at-act still at 149.99 lol

Basically seems like if it was old they still have it but the new stuff is going fast people are not waiting for clearance so if you want something better hurry and not wait

[william-james88]

I don't know if this will happen but I've heard that with the liquidation TRUs might close without notice and without going out of business sales.

Yes, they are burning through millions every month to keep stores open, some might just close to stop losing money. They could just mass sell their toys to a discount outlet.

[WreckerJack]

I don't know if this will happen but I've heard that with the liquidation TRUs might close without notice and without going out of business sales.

Yes, they are burning through millions every month to keep stores open, some might just close to stop losing money. They could just mass sell their toys to a discount outlet.

Like I said a few days ago - keep your eyes peeled at Ross and TJmaxx.

[Chibi Starscream]

I went to my local TRU yesterday....prolly for the last time, but I'll try to go again if I can within the next two weeks. There was no Closing sign or special sales. The store was almost devoid of staff except for 4 cashiers, a lady stocking the Beanie Boos section, and the announcer lady. The electronics section had huge gaps in their game inventory, and their TF section was lacking. However, I picked up the last Skullitron they had (a TRU exclusive TLK fig with a dragon alt mode), as well as some Sonic the Hedgehog plush dolls (Sonic Boom "emoji" Sonic, Tails, and Knuckles), and 2 amiibos (Pit and Kirby). I had also picked up a pink and a blue Yarn Yoshi and a Sailor Moon transformation rod (Sailor Moon's) but I had to put them back. If I can get there again before they close and they have those, I'll get them next time and maybe another TF or 2. Will see. It'ssad TRU is closing....."I don't wanna grow up. I'm a Toys R Us kid!" *dies a little inside*

[Jelze Bunnycat]

My wife went to our local TRU today and the employees there are well caught up with the current news upon being asked. Furthermore, they're expressing hope that the Canadian buyout will translate into at least US stores staying open, but if the worst comes, they'll be closing by May 14th.

[chuckdawg1999]

I do a lot of surveys online for points that can be redeemed for various gift cards like TRU. Today I got a notice from one of my sites that TRU will stop accepting gift cards on April 15th. I'm not sure if this is 100% accurate and I don't know if that includes reward coupons like the $5 one I have.

[tmthor]

Some sites are saying the Canada sale will probably not happen or at least the 200 American stores part won't....not sure if vendors would sell merch to them if they did get saved and if they do it could be at a higher price/cod payment terms to get some of their losses back. One issue I forsee with the MGA purchase is they cold give their products more space in stores or even take revenge on Mattel for the Bratz lawsuit and just shut them out completely. Also some vendors might not want a competitor to have sales knowledge of their product think of it as company secrets...MGA could use the info gained from it to boost sales accross the board

Just read on another site the legally the sale would also hinge on the creditors ie Mattel being owed the most and with the Bab blood between MGA and Mattel they might say "blank" you liquidate and give us as much as you can

[william-james88]

Some sites are saying the Canada sale will probably not happen or at least the 200 American stores part won't

Yeah, the 200 stores part opens so many issues, its not longer clean. With just selling the canadian part, its a whole company run on its own. Like Proctor and Gamble selling a product/subsidiary. Its just equity.

But with the 200 US stores, then you open yourself up to the same trouble you already have, plus the debt. With TRU Canada, you would just sell the business and use the money you got from the sale to pay what is owed.

I know the MGA offer did not have the 200 stores as part of it and many other investors are interested in the Canadian subsidiary (as far as the financial times say) just not the US portion.

And anyways, the 200 store number is pretty arbitrary, the document says any additional store aside from the canadian equity is up to the bidder:

Bids for Canadian Equity: A Qualified Bid must offer to purchase at least the Canadian Equity, and may also identify which, if any, subset of the Debtors’ U.S. stores it proposes to purchase. A single bidder or group of bidders may submit a Bid.

[WreckerJack]

I do a lot of surveys online for points that can be redeemed for various gift cards like TRU. Today I got a notice from one of my sites that TRU will stop accepting gift cards on April 15th. I'm not sure if this is 100% accurate and I don't know if that includes reward coupons like the $5 one I have.

I'd spend any TRU giftcards or store credit as soon as you can rather than it go to waste.

[Simplify]

The Cause and Consequences of the Retail Apocalypse"
Private equity firms overburdened businesses with debt, and now workers are paying the price. Will policymakers do anything about it?
By DAVID DAYEN, The New Republic, Nov. 14, 2018

[...] RadioShack, The Limited, Payless, and Toys 'R' Us are among 19 retail bankruptcies this year. Some point to Amazon and other online retailers for wrestling away market share, but e-commerce sales in the second quarter of 2017 only hit 8.9 percent of total sales. There’s still plenty of opportunity for retail outlets with physical space.

The real reason so many companies are sick, as Bloomberg explained in a recent feature, has to do with debt. Private equity firms purchased numerous chain retailers over the past decade, loading them up with unsustainable debt payments as part of a disastrous business strategy.

Damn you, Cyclomney.

Buyout managers, including Bain Capital and longtime firm Kohlberg Kravis Roberts, stripped out nearly $2 billion in cash while debt levels rose.

[Chibi Starscream]

My wife went to our local TRU today and the employees there are well caught up with the current news upon being asked. Furthermore, they're expressing hope that the Canadian buyout will translate into at least US stores staying open, but if the worst comes, they'll be closing by May 14th.

That's good to know. I just dumped a bit over $100 into them...not that that eill cure any debt....but here's to that small shred of hope! Now if we can get more kids unstuck from tablets and put Optimus Primes in their hands instead....but we're asking for a miracle. Note....if I ever have a kid, I will buy them toys. When they're 14 they can have a phone...maybe....

[WreckerJack]

I won't be having any kids. My toys are for ME!

[-Kanrabat-]

I won't be having any kids. My toys are for ME!

YOU MONSTER!

Me too by the way.

[william-james88]

Having kids is awesome, you can go to the store and pretend the toys you're buying are for them instead and nobody gives you weird looks.

[Va'al]

The staff did a thing, and we'd like others to join us too: share your memories of Toys R Us!

https://www.seibertron.com/transformers ... -us/40914/

[-Kanrabat-]

Having kids is awesome, you can go to the store and pretend the toys you're buying are for them instead and nobody gives you weird looks.

I have to admit that in the first two years of toy collecting, I was genuinely embarassed and even ashamed when I shopped for toys.

Then I "grew up" and I no longer give a phoque.

Your turn, CS Lewis:

[ZeroWolf]

I love that quote of his, and oddly enough I never had much of a problem buying them, there was no odd stares or questions, just the look of someone who would rather be elsewhere then serving customers.

[chuckdawg1999]

CNN Money had an article up. Long story short they don't know when exactly stores are closing but apparently there will be sales. Also Tuesday they have to go back to court to get permission to put up store closing signs.

[lakebot]

The Cause and Consequences of the Retail Apocalypse"
Private equity firms overburdened businesses with debt, and now workers are paying the price. Will policymakers do anything about it?
By DAVID DAYEN, The New Republic, Nov. 14, 2018

[...] RadioShack, The Limited, Payless, and Toys 'R' Us are among 19 retail bankruptcies this year. Some point to Amazon and other online retailers for wrestling away market share, but e-commerce sales in the second quarter of 2017 only hit 8.9 percent of total sales. There’s still plenty of opportunity for retail outlets with physical space.

The real reason so many companies are sick, as Bloomberg explained in a recent feature, has to do with debt. Private equity firms purchased numerous chain retailers over the past decade, loading them up with unsustainable debt payments as part of a disastrous business strategy.

Damn you, Cyclomney.

Buyout managers, including Bain Capital and longtime firm Kohlberg Kravis Roberts, stripped out nearly $2 billion in cash while debt levels rose.

This makes a lot more sense. So, a financial motivation to enter into an untenable business deal.

I do feel for those losing their jobs by the way. I suppose in reality, that’s probably one of the truly more saddening things about all this.

[Va'al]

With the stories about Toys R Us dominating the news cycle for toy collectors and fans, something else seems to have made its appearance, sped up by the closure of the giraffe-shaped retail chain, and a name that North American Transformers fans might recognise: KB Toys.

Fellow Seibertronian Sabrblade pointed us towards an article on The Rock Father detailing the entire deal, but it all starts with Ellia Kassoff of Strategic Brands, LLC, posting on LinkedIn about their plans to resurrect KB Toys, and how the TRU closure has affected all this.

we have now accelerated our business plan and hope to have our stores up and running before Christmas. We're in discussions with many of the toy manufactures, as we try to find out the best way to support them and the 20% loss of the US toy market due to the Toys R Us liquidation.

Additionally, Kassoff later posted another message, highlighting their current priorities in terms of the over 30000 people who are losing their current jobs at Toys R Us, along with any other specialist in the toy industry (manufacturer, distributor, retailer, etc) who may be interested in joining the initiative to, as they put it, 'save the toy industry'.

The action is bold, and as Zahn points out in the article on The Rock Father, there are both good pointers and potential hurdles in the whole deal, including the cause of KB's downfall in the first place being the same as TRU's this time round:

Strategic Marks did indeed file for a trademark on the name "KB Toys" back in 2016. What's interesting here is that the original KB Toys fell victim to the same vultures at Bain Capital, who loaded that company with debt and killed it in the same way that they've destroyed Toys "R" Us. Then, in 2009, Toys "R" Us acquired the KB portfolio of trademarks from Streambank, LLC for just over $2M, taking over the domain names and later using the KB Toys name on a series of budget-priced, house-branded toys and games (they were crap) labeled as K•B Classics. Along the way, KB had many variations of their name, including K•B Toys, K•B Toys Outlet, K•B Toy Works and Kay-Bee Toys. It will be interesting to see if Toys "R" Us still considers any of those to be assets in their liquidation, as I was able to find that KBToys.com, KBToyWorks.com and KBKids.com (which once had a $43M push behind it) are all still owned by Toys "R" Us and pointed to the TRU.com server (although unresponsive)

That said, what do you make of this? Is it a positive update in the Toys r Us debacle? Is it something that might interest you to follow through? Join the conversation in the Energon Pub, and share your thoughts!

[spiderbob007]

Every company that Bain Capital touches seems to go bankrupt.

Two stories of Bain's money management skills:
http://nyp.st/2pgWNyJ
http://nyp.st/2xUP53Y

[Galactic Prime]

North American Transformers fans? KB Toys never existed in Canada or Mexico.