Toys R Us debating whether or not it will close all of its US store locations

Transformers News: Toys R Us debating whether or not it will close all of its US store locations

Thursday, March 8th, 2018 9:34PM CST

Categories: Toy News, Company News
Posted by: william-james88   Views: 25,785

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You read that right. This Monday, Toys R Us is expected to appear at a bankruptcy hearing and shutting down all its stores and liquidating its entire US operations is one of the options they are considering. There are other options, of course, but this is the option certain lenders are pushing for, after a weak holiday performance. They had already planned to close 20% of their US stores (184 to be precise).

This comes to us from the Wall Street Journal which refers to unspecified people in the know.

Just to be very clear, this does not mean that all stores are closing Monday, it just means that the decision to close all stores in the US could be made official Monday. Liquidation would happen soon after. Also, this is just for US operations.

Here are the key parts from the Wall Street Journal Article:

- Troubled toy chain Toys R Us Inc. is preparing to liquidate all of its U.S. stores and abandon efforts to restructure through the bankruptcy process, people familiar with the matter said, after a weak holiday season torpedoed plans to reorganize.

- An announcement could come as soon as Monday when the parties are expected to appear at a bankruptcy hearing in Richmond, VA., the people said. How much Toys R Us decides to liquidate will depend on the size of the liquidator bids it receives, the people said.

- The plan to shut down the stores and liquidate the U.S. operations is one of several scenarios in play, one of the people said, and while some lenders are pushing that route, others want to find other options for Toys R Us to continue operations.
Credit(s): Wall Street Journal
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Re: Toys R Us debating whether or not it will close all of its US store locations (1944856)
Posted by william-james88 on March 8th, 2018 @ 9:46pm CST
shajaki wrote:Will, is the article accurate that TRU Canada entered bankruptcy last September? I don't recall hearing that!

Yes, it did. But it did so seperately. It was indeed protection from the US going bankrupt since TRU Canada has been lending its surplus money to the US branches.

The US was sinking Canada down with them (which they can, they own it) so when they declared bankruptcy, Canada had to decalre bankruptcy too.

However, I do not think that the US liquidating means canada will have to be liquidated as well. Regardless, TRU Canada is ridiculously profitable due to the meager competition so what i beleive is someone would simply buy the Canadian operations if things got really dire.
Re: Toys R Us debating whether or not it will close all of its US store locations (1944857)
Posted by BombshellDaBug on March 8th, 2018 @ 9:50pm CST
Holy S*** this is troubling as all hell. Granted the decision isn't final yet, but it's still really concerning for TRU. One concern of mine is that TRU might be the only option for TF collecting for certain people. I also can't help but wonder what's going to happen to certain exclusives i.e. Studio Series Thundercracker. Are we going to get an alternative outlet for purchasing it, or are we just not going to see it as a result of this?
Re: Toys R Us debating whether or not it will close all of its US store locations (1944858)
Posted by william-james88 on March 8th, 2018 @ 9:52pm CST
BombshellDaBug wrote:Holy S*** this is troubling as all hell. Granted the decision isn't final yet, but it's still really concerning for TRU. One concern of mine is that TRU might be the only option for TF collecting for certain people. I also can't help but wonder what's going to happen to certain exclusives i.e. Studio Series Thundercracker. Are we going to get an alternative outlet for purchasing it, or are we just not going to see it as a result of this?

Thundercacker is already out at TRU, and was the last TRU exclusive.
Re: Toys R Us debating whether or not it will close all of its US store locations (1944865)
Posted by TK415 on March 8th, 2018 @ 10:26pm CST
how does liquidating stores and inventory help lenders? Aren't the locations leased? Are the stores locations owned? Selling real estate would bring in money. Thanks for any answers.
Re: Toys R Us debating whether or not it will close all of its US store locations (1944868)
Posted by Logsters65 on March 8th, 2018 @ 10:28pm CST
If anyone has any news or theories on what might happen to the Canadian stores please let me know, I really hope they don't close down because it's my main supplier for transformers
Re: Toys R Us debating whether or not it will close all of its US store locations (1944873)
Posted by Wireless_Phantom on March 8th, 2018 @ 10:44pm CST
SHIT
Re: Toys R Us debating whether or not it will close all of its US store locations (1944878)
Posted by WreckerJack on March 8th, 2018 @ 11:30pm CST
TK415 wrote:how does liquidating stores and inventory help lenders?

IIRC its a way to sell off unused products to get 'liquid funds'. Think of stores like ROSS, TJMaxx and Nordstrom Rack that sell surplus goods. My theory is some of the overstock from TRU may wind up those places. I could be wrong.
Re: Toys R Us debating whether or not it will close all of its US store locations (1944882)
Posted by Me Grimlock King on March 9th, 2018 @ 12:04am CST
Well that's just Prime :-(
Re: Toys R Us debating whether or not it will close all of its US store locations (1944890)
Posted by JelZe GoldRabbit on March 9th, 2018 @ 1:06am CST
WreckerJack wrote:
TK415 wrote:how does liquidating stores and inventory help lenders?

IIRC its a way to sell off unused products to get 'liquid funds'. Think of stores like ROSS, TJMaxx and Nordstrom Rack that sell surplus goods. My theory is some of the overstock from TRU may wind up those places. I could be wrong.


Basically anyone who wants to buy those goods is fair game. A step in the bankruptcy trajectory is to asses value of possessions, with movable stock as a primary focus. Once that is sold off either via sales in store or overstock to other companies, the real estate is next, which may take a while longer. It all depends on who shows interest in picking up a particular lot, it's a case by case basis, like one company buys up the lots in a particular city, another buys all the lots on East coast, and so on. I'm seeing it happen a lot back home in the Netherlands, with department stores and supermarkets biting the dust left and right.

Thankfully, the move to close up shop was an anticipated possibility so there are no exclusives in the pipeline: the future Movie MP figures and other normally TRU exclusives have been relegated to other stores. Anybody remember KB Toys with their exclusives close to bankruptcy in 2005? Nightmarish.
Re: Toys R Us debating whether or not it will close all of its US store locations (1944912)
Posted by leokearon on March 9th, 2018 @ 4:36am CST
Kind of stupid of Hasbro to give a store in financial trouble and now could be closing a lot of exclusives. Maybe this might be a lesson and finally stop store exclusives
Re: Toys R Us debating whether or not it will close all of its US store locations (1944916)
Posted by Rated X on March 9th, 2018 @ 5:01am CST
Funny how an American company decides to say f**k America after they established their brand in foreign countries. As much as I will miss the exclusives, I say f**k em and their overpricing. Why dont they just dump babies-r-us instead? Good luck in Australia with your $250 Trypticons and $50 voyagers.
Re: Toys R Us debating whether or not it will close all of its US store locations (1944919)
Posted by dragons on March 9th, 2018 @ 6:02am CST
Logsters65 wrote:If anyone has any news or theories on what might happen to the Canadian stores please let me know, I really hope they don't close down because it's my main supplier for transformers


Its main supplier for any toy there selection is bigger than walmart they even sell some Japanese stuff dbz naruto and other anime stuff
Re: Toys R Us debating whether or not it will close all of its US store locations (1944925)
Posted by Emerje on March 9th, 2018 @ 6:13am CST
The most frustrating and expensive place to buy toys is closing. >:oP

I don't have much in the way of childhood nostalgia going there and as an adult I've only known them as a huge headache so I really can't say I'm going to miss them. I'd go as far as to say I'm glad they're going away, now I don't have to drive 75 miles in hopes of finding an exclusive.

Emerje
Re: Toys R Us debating whether or not it will close all of its US store locations (1944929)
Posted by Acesmcgee on March 9th, 2018 @ 6:33am CST
If/when they go from the U.S. I won't miss the prices, but I will miss the experience. There is something so fun about walking into that place as a collector and seeing all that their can be to collect strewn about you. When you go in with your kids, there is a very Lion King type moment in my head when that door opens and my kids walk in with me (at least when my son was younger, now he's too cool for toys at 17, but at 9 my daughter still fits the bill) and you just want to say "All that the light hits could be yours".
It's so fun to see kids eyes afire with awe, want, desire of the toys as you walk around, even if all your doing is picking up someone else's birthday gift. I'm laughing to myself remembering my wife admonishing me as well as the kids "We are only here to get a birthday gift, don't go giving me puppy eyes and asking me for anything, that goes double for you Mr. Walsh" So yeah, if it goes, I'll miss it for a couple of reasons, but nothing that won't live in my memories, until senility sets in at least. :lol:
Re: Toys R Us debating whether or not it will close all of its US store locations (1944930)
Posted by griftimus prime on March 9th, 2018 @ 6:52am CST
it wont be a surprise when it happens.
Re: Toys R Us debating whether or not it will close all of its US store locations (1944936)
Posted by That_Guy on March 9th, 2018 @ 7:14am CST
I'm more sad about the experience as well. The one in Clearwater and Citrus Park aren't very good at stocking up Transformers. What I will miss the most that is more recent; taking me three year old son to the section they started up during the holiday season where kids can play with various toys. His excitement about it and playing with him there outside of the house was fun. Guess it's more trips to Barnes and Noble (he LOVES the Thomas the Train set up)....unlike Toys R Us lately, they actually HAVE trains to play on the tracks. As for Transformers, I've been finding more at Think Geek and even Patrick AFB at the Exchange they have Trypticon for 112.00 bucks. Haven't really been collecting anyway ever since I sold my entire collection to Big Red Head Comics.
Re: Toys R Us debating whether or not it will close all of its US store locations (1944939)
Posted by Cyber Bishop on March 9th, 2018 @ 7:28am CST
I have shopped at TRU for years, I remember the days when they had more chains like Lionel Playworld and children's Palace (non mall stores) and prices were a lot better. I do have fond memories of buying some TF's from TRU like the original Fort Max and Scorponok. Unfortunately recently If I have purchased more than 3 items from TRU a year unlike when I used to get at least 50 - 75% of my toys from them as they are too damn expensive now, and I can get the toys other places. If I visit the only local store once a month I am lucky as lately I have gone 2 - 3 months without stepping foot in one of their stores.
Re: Toys R Us debating whether or not it will close all of its US store locations (1944947)
Posted by Kyleor on March 9th, 2018 @ 8:17am CST
Judging by their previous decision making choices, poorly handled/run liquidation is probably what they'll go with. If only they could dump the upper/middle management dead-weight and only keep the people who are willing to do what's necessary to keep the company going.

I may have to shift to buying mostly online since I can count the number of different Transformers my local Wal-marts usually have in stock on one hand, and my local Targets are usually very slow to stock/restock, when the Transformers section isn't overtaken by 'IP of the month' toy overflows.
Re: Toys R Us debating whether or not it will close all of its US store locations (1944950)
Posted by ScottyP on March 9th, 2018 @ 8:20am CST
Just banked out my last two years' worth of Rewards R Us dollars. Not gonna chance it that they don't get honored during a liquidation.
Re: Toys R Us debating whether or not it will close all of its US store locations (1944955)
Posted by Tyrannacon on March 9th, 2018 @ 8:36am CST
I feel very conflicted over this because it's been such a staple of my existence for as long as I've been alive though I always felt they charged too much on the markup on the products they stocked. I am saddened by this though. :(
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