The Toys R Us Troubles Thread

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Re: The Toys R Us Troubles Thread

Postby Galactic Prime » Mon Apr 23, 2018 1:55 pm

Rated X wrote:And yet another TRU article that has nothing to actually do with Transformers. This obsession with TRUs demise is getting ridiculous. Its a toy store. Someone else will rise from their ashes to sell Transformers. Hello...Transformers anyone? #-o


We aren't all Americans you know, some of us have very limited places to buy Transformers. In Canada we have Walmart and TRU. If TRU goes, we're screwed.

So yeah, some of us want to read these articles.
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Re: The Toys R Us Troubles Thread

Postby Bronzewolf » Mon Apr 23, 2018 2:15 pm

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TRU has been going for 60 years. Beyond it being a big part in our current collecting, it was a big part of many people's childhoods. People care. Many of the people who visit our site (surprise surprise) also want to know about Toy industry news in general.
I suppose we shouldn't be posting about Hasbro's financial earnings, either, then, because it's not exclusively about TFs. Good to know. :roll:
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Re: The Toys R Us Troubles Thread

Postby Burn » Mon Apr 23, 2018 2:20 pm

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Lets move on from the "is it news or not?" discussion please ...
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Re: The Toys R Us Troubles Thread

Postby Bronzewolf » Mon Apr 23, 2018 2:22 pm

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Burn wrote:Lets move on from the "is it news or not?" discussion please ...

Yes. Apologies.
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Re: The Toys R Us Troubles Thread

Postby DMSL » Mon Apr 23, 2018 2:40 pm

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Can we please get a Smyth's in The Netherlands? While we are at it how about a Target and a Walmart?
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Toysrus Canada Has Been Sold

Postby william-james88 » Mon Apr 23, 2018 9:59 pm

It seems like there is more and more good news for Toysrus and collectors worldwide. European divisions are being purchased by a beloved family toy store chain, the Asian division is getting Billion dollar offers, Grotusque is finally being found in US stores and now Toysrus Canada finally has a buyer.

There was to be an auction this month and the 19 $B holdings firm, Fairfax Financial, had made the inaugural bid of $300M, ensuring that the Canadian division would not be sold for less. As it turns out, no other bid was accepted so Fairfax Financial has become the owner. For those unaware, Fairfax is a Toronto based firm founded by Prem Watsa, who is often referred to as Canada's Warren Buffet. He is also the current CEO. Like Buffet's Berkshire Hathaway, many of their holdings are value based but they seem to be more concentrated on insurance, aquiring insurance companies based around the globe (the head office in Toronto only houses 30 of its 8,200 employees). They have a habit of buying companies on the verge of bankruptcy at a good but fair price, which is something they previously did with Blackberry and Carillion Canada (an infrastucture service company).

The Fairfax name itself is a portemanteu for "fair, friendly acquisitions" and this is evident in its bid for Toysrus Canada which was higher (and thus more fair) than what toy mogul Isaac Larian had previously bid. In the end, this is great news for fans who liked how things were so far in Canada. Toysrus being bought by a holdings firm (which is only seeking diversification in its portfolio) simply means that they see value in the company and thus everything points to business as usual as far as Canadian stores are concerned.

So hopefully that means Canadian fans can still expect to see shelves like this once in a while.

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Re: The Toys R Us Troubles Thread

Postby ZeroWolf » Tue Apr 24, 2018 3:20 am

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You rubbing it in will again about what tru is like for Canadian tf fans? :-P only time I saw shelves like that at the tru near me was when the first movie came out and animated launched. Still this is good news to those in Canada :-)
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Re: The Toys R Us Troubles Thread

Postby Nickster563 » Tue Apr 24, 2018 7:58 am

I thought if the Canadian branch got bought it would also save 200 US stores?
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Re: The Toys R Us Troubles Thread

Postby Qwan » Tue Apr 24, 2018 6:49 pm

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Nickster563 wrote:I thought if the Canadian branch got bought it would also save 200 US stores?

IIRC, Toys R Us was originally trying to package 200 US stores in with the Canadian branch for purchase, but that didn't end up happening.
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Re: The Toys R Us Troubles Thread

Postby william-james88 » Tue Apr 24, 2018 7:09 pm

Nickster563 wrote:I thought if the Canadian branch got bought it would also save 200 US stores?

That was a deal TRU wanted to make but it didnt pan out. They recently wrote that ALL US stores will be closing forever (which I found quite dramatic). It was easier, legally and fiscally, to just sell the canadian equity to a holding firm, which is exactly what happened. I think Fairfaz got an incredible deal here, congrats on them using value investment techniques to be able to have enough available assets to do the purchase!

ZeroWolf wrote:You rubbing it in will again about what tru is like for Canadian tf fans? :-P only time I saw shelves like that at the tru near me was when the first movie came out and animated launched. Still this is good news to those in Canada :-)


Haha, not this time. And apparently the UK is not too shabby either with me hearing about how great Smyths Toys is.

But anyways, what I was trying to say, and maybe it didnt come out right, was that there was more at stake with TRU Canada. Most collectors here gave up on TRU US a looong time ago. It was no longer competitive (but it still had a good price match policy so I feel a guy like me could have still profited from visiting that store but whatever). So this news was sad but didnt surprise anyone really.

TRU Canada though (and TRU Hong Kong, among other international places) was a very different story. Unlike the US, this was the main place for anything toy related. More than Walmart. We have no Walgreens or targets or kmarts or those other regional superstores in the US that also order directly from hasbro. So TRU is a really big deal here and it totally takes advantage of its position as a market leader with amazing stock, like what I showed above. So, just to say, way more at stake. And with bids not geting aproved people worried. The states was long gone and had not seen the shelves stocked that well for a decade (at least) but with TRU Canada, it was still happening. And now, it can still happen, pfiew!
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Re: The Toys R Us Troubles Thread

Postby Galactic Prime » Wed Apr 25, 2018 2:07 pm

william-james88 wrote:
Nickster563 wrote:I thought if the Canadian branch got bought it would also save 200 US stores?

That was a deal TRU wanted to make but it didnt pan out. They recently wrote that ALL US stores will be closing forever (which I found quite dramatic). It was easier, legally and fiscally, to just sell the canadian equity to a holding firm, which is exactly what happened. I think Fairfaz got an incredible deal here, congrats on them using value investment techniques to be able to have enough available assets to do the purchase!

ZeroWolf wrote:You rubbing it in will again about what tru is like for Canadian tf fans? :-P only time I saw shelves like that at the tru near me was when the first movie came out and animated launched. Still this is good news to those in Canada :-)


Haha, not this time. And apparently the UK is not too shabby either with me hearing about how great Smyths Toys is.

But anyways, what I was trying to say, and maybe it didnt come out right, was that there was more at stake with TRU Canada. Most collectors here gave up on TRU US a looong time ago. It was no longer competitive (but it still had a good price match policy so I feel a guy like me could have still profited from visiting that store but whatever). So this news was sad but didnt surprise anyone really.

TRU Canada though (and TRU Hong Kong, among other international places) was a very different story. Unlike the US, this was the main place for anything toy related. More than Walmart. We have no Walgreens or targets or kmarts or those other regional superstores in the US that also order directly from hasbro. So TRU is a really big deal here and it totally takes advantage of its position as a market leader with amazing stock, like what I showed above. So, just to say, way more at stake. And with bids not geting aproved people worried. The states was long gone and had not seen the shelves stocked that well for a decade (at least) but with TRU Canada, it was still happening. And now, it can still happen, pfiew!



I agree, this is amazing news for us in the Great White North
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Re: The Toys R Us Troubles Thread

Postby Gunmetal » Wed Apr 25, 2018 4:27 pm

So, that Save Toys"R"Us GoFundMe? I just got emails announcing that the money is being refunded. (One for the actual donation, one for the keep-GoFundMe-operating contribution.)

Guess the dude wasn't going to run off with the money after all.
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Re: The Toys R Us Troubles Thread

Postby Seibertron » Wed Apr 25, 2018 11:59 pm

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For those on the "why is Seibertron.com posting so much news about Toys R Us", it's because Toys R Us is not just "another random retail chain going out of business". This is seriously hurting Hasbro and other toy companies right now, which directly affects the health of the very brand we are all here to celebrate.

Without further ado, here's bad news that hits home for the Transformers brand.

Toys 'R' Us liquidation kills Hasbro sales
http://money.cnn.com/2018/04/23/investing/hasbro-earnings-toys-r-us-mattel/index.html
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Re: The Toys R Us Troubles Thread

Postby Z3ROhour » Thu Apr 26, 2018 11:16 pm

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Re: The Toys R Us Troubles Thread

Postby Burn » Fri Apr 27, 2018 9:20 pm

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Thank you for that incredibly insightful post Z3ROhour, was there something you wanted to add about TRU or are you just happy for the attention?
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Toys R Us Australia Enters Administration

Postby Qwan » Mon May 21, 2018 5:05 am

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Yes, it's back again folks. The Toys R Us saga continues, this time in Australia as the company's branch in that country enters voluntary administration. Last we heard, Australian Toys R Us stores would be continuing as normal despite the US branch shutting down, and up until now they've been chugging along, but it seems that's about to change.

According to the Financial Review, TRU Australia had been looking for a buyer, but the last bidder has recently withdrawn their offer and directors have chosen to enter voluntary administration by the firm McGrathNicol. This is how the Financial Review describes the Australian branch's dire financial straits:

[...] the Australian business has racked up losses of more than $100 million over the last seven years and could not continue as a stand alone entity.

Toys 'R' Us Australia lost $7.6 million in 2017 on sales of $276.4 million and had net liabilities of $6 million, according to its latest accounts.

For those Australian collectors wondering how this will affect purchasing from Toys R Us in the coming times, here's the rundown on what he have so far.

    - Both Toys R Us and Babies R Us should continue operating while McGrathNicol "urgently explores options for a sale".
    - Refunds will no longer be offered on sold items
    - Gift cards and vouchers will be honoured, as long as customers spend an additional equivalent amount (i.e. to redeem a $50 gift card, a customer would need to purchase $100 worth of product).
    - Online orders will be delivered, provided the order has been fully paid for and the stock is available.
This is definitely sad news to hear, but we still want to hear your thoughts on it. How do you think this might affect the collecting climate in the future? Let us know on the Energon Pub Forums, and keep an eye on Seibertron.com for updates on this or any other Transformers-related news.

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Re: The Toys R Us Troubles Thread

Postby ZeroWolf » Mon May 21, 2018 5:50 am

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How sad to see a giants last few breaths. So the question I now wonder is, what was done differently with the likes of the Canadian branch that allowed it to weather the same storm that took everything else. I would have thought that all the different branches would have faced the same problems.
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Re: The Toys R Us Troubles Thread

Postby dragons » Mon May 21, 2018 6:11 am

Wow never saw toysrus located inside mall smallest ToysRus i saw I’m surprised there was no good news for that part of country of toysrus to many drop outs wander what’s making them do so
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Re: The Toys R Us Troubles Thread

Postby Aimless Misfire » Mon May 21, 2018 6:11 am

I live in America unfortunately & I only have 1 Walmart close by. And that store is the biggest joke that never restocks Transformers. So I know what it's like, makes you want to quit & say to hell with it. No stores around & online is nothing but a ridiculously over priced scalper hell. :-(

I still can't find 1 freakin Cyber Battalion Shockwave. It's friggin ridiculous!
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Re: The Toys R Us Troubles Thread

Postby Qwan » Mon May 21, 2018 6:32 am

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dragons wrote:Wow never saw toysrus located inside mall smallest ToysRus i saw I’m surprised there was no good news for that part of country of toysrus to many drop outs wander what’s making them do so

I've actually been to this particular Toys R Us! (I chose it for the picture as kind of a tribute to "my" TRU.) Surprisingly, it's just as big inside as any other Toys R Us stores I've been to, despite being technically inside a mall. Honestly, I'll be sad to see it go, if the whole branch does end up closing down fully... :(
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Re: The Toys R Us Troubles Thread

Postby Rated X » Mon May 21, 2018 7:38 am

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Domino effect...
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Re: The Toys R Us Troubles Thread

Postby Editor » Mon May 21, 2018 10:09 am

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ZeroWolf wrote:So the question I now wonder is, what was done differently with the likes of the Canadian branch that allowed it to weather the same storm that took everything else.


Basically, different laws and internal inventory management.

Had the American division been able to leverage the Canadian, to load it up with unsustainable debt loads for short term profits it likely would have, but different regulations stopped that from happening. This ment the Canadian division ran itself as a leaner operation. The more the US side struggled, the more the Canadian side looked to protect itself.

Stores would operate with lower stock levels than American ones, depending on weekly restocks instead of fully stocked back rooms, as well as other means to keep operational costs lower. All in all, moves that kept it in the black and financially stronger. The financial protection the Canadian division entered last year was just protective, to ensure suppliers shorted by the American division couldn't place undue pressure, (demands for payment of US orders/short shipping Canadian stock for leverage) that would undermine the ability to operate independently.
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Re: The Toys R Us Troubles Thread

Postby Fires_Of_Inferno » Mon May 21, 2018 10:13 am

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ZeroWolf wrote:How sad to see a giants last few breaths. So the question I now wonder is, what was done differently with the likes of the Canadian branch that allowed it to weather the same storm that took everything else. I would have thought that all the different branches would have faced the same problems.


Not quite sure how it is in Australia, but in Canada, Toys R' Us doesn't really have much in the way of competition. Walmart has only a small toy section, Real Canadian Superstore doesn't have much in the way of a toy section anymore. Other places you'd find toys are drug stores or comic/collectable stores. So Toys R' Us is still pretty busy. When I went down there last Thursday the poor cashier was run ragged with how busy it had been that day!

I don't think it's so much something they actively did, as much as it is the retail environment that they're part of that contributes to them sticking around up here. Of course, I could be way off.
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Re: The Toys R Us Troubles Thread

Postby Galactic Prime » Mon May 21, 2018 11:18 am

It was explained earlier what the Canadian side. It's managed better, it runs a better operation and there's no competition for them here in Canada.

We have TRU and Walmart, that's it and Walmart is horrible for stock.
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Re: The Toys R Us Troubles Thread

Postby Burn » Mon May 21, 2018 4:07 pm

Motto: "Freedom is the right of all sentient beings to randomly click things in the Admin Panel to see what it breaks."
What's disappointing is that while TRU AU has plenty of competition in terms of toys (Target, K-Mart, Big W, Myer and on a smaller scale, Toyworld), from a Transformers perspective K-Mart and Target have recently raised their prices to match TRU AU, which means they were all mostly on par.

TRU also has the better distribution with all stores Australia wide receiving their stock at the same time, while the others slowly trickle out around the country.

Plus there's the Takara Tomy stuff ...
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