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Toys Were Us
Topic Started: Mar 9 2018, 08:52 AM (106 Views)
George K
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Finally
https://www.bloomberg.com/news/articles/2018-03-08/toys-r-us-said-to-be-prepping-liquidation-of-u-s-operations
Quote:
 
Toys “R” Us Inc. is making preparations for a liquidation of its bankrupt U.S. operations after so far failing to find a buyer or reach a debt restructuring deal with lenders, according to people familiar with the matter.

While the situation is still fluid, a shutdown of the U.S. division has become increasingly likely in recent days, said the people, who asked not to be identified because the information is private. Hopes are fading that a buyer will emerge to keep some of the business operating, or that lenders will agree on terms of a debt restructuring, the people said.

The toy chain’s U.S. division entered bankruptcy in September, planning to emerge with a leaner business model and more manageable debt. A new $3.1 billion loan was obtained to keep the stores open during the turnaround effort, but results worsened more than expected during the holidays, casting doubt on the chain’s viability.

“While a Chapter 11 bankruptcy provides a company with breathing space, it is incumbent on the debtors’ management to show how it intends to reorganize as a going concern,” said Gregory Plotko, a partner in the bankruptcy practice at Richards Kibbe & Orbe LLP. “My sense is that the major creditor group has not yet heard a compelling enough story, nor has a ‘white knight’ appeared.”
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- Mik, 6/14/08


Nothing is as effective as homeopathy.

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MainerMikeBrown
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I loved going to Toys R Us when I was a kid.
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Jolly
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Geaux Tigers!
Amazon kills another one...
The main obstacle to a stable and just world order is the United States.- George Soros
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George K
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Finally
Jolly
Mar 9 2018, 09:05 AM
Amazon kills another one...
Perzactly what I was thinking. It used to be a joke that "Best Buy is Amazon's showroom."

No one's laughing any more.
A guide to GKSR: Click

"Now look here, you Baltic gas passer... "
- Mik, 6/14/08


Nothing is as effective as homeopathy.

I'd rather listen to an hour of Abba than an hour of The Beatles.
- Klaus, 4/29/18
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George K
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Finally
Jolly
Mar 9 2018, 09:05 AM
Amazon kills another one...
Maybe not?
Quote:
 
There are endless reasons a big-box toy store would collapse during a retail apocalypse — and Toys R Us acknowledged a number of them in its most recent annual filing: the teetering tower of debt incurred by its private-equity owners, competition from Amazon, Walmart and Target.

They even wrung their hands about app stores, labor costs and potential tariffs raising the costs of the imported goods they sell.

But one risk stood out. Toys R Us said there just weren’t enough babies (emphasis ours):
Quote:
 
The decrease of birthrates in countries where we operate could negatively affect our business. Most of our end-customers are newborns and children and, as a result, our revenue are dependent on the birthrates in countries where we operate. In recent years, many countries’ birthrates have dropped or stagnated as their population ages, and education and income levels increase. A continued and significant decline in the number of newborns and children in these countries could have a material adverse effect on our operating results.

It may not have been the biggest existential threat confronting Geoffrey the Giraffe (the store’s mascot), but it’s the one with the broadest implications outside of the worlds of toys and malls.

Measured as a share of overall population, U.S. births have fallen steadily since the Great Recession. They hit their lowest point on record in 2016 — the most recent year for which the Centers for Disease Control and Prevention has comparable data.

Posted Image

The change in the number of children born in the previous 12 years (and thus sitting right within the Toys R Us demographic), tracks closely with the company’s changing annual revenue.

Posted Image
A guide to GKSR: Click

"Now look here, you Baltic gas passer... "
- Mik, 6/14/08


Nothing is as effective as homeopathy.

I'd rather listen to an hour of Abba than an hour of The Beatles.
- Klaus, 4/29/18
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Jolly
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Geaux Tigers!
This why we need to persuade more children to be gay or transgendered.
The main obstacle to a stable and just world order is the United States.- George Soros
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Axtremus
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HOLY CARP!!!
Jolly
Mar 20 2018, 06:35 AM
This why we need to persuade more children to be gay or transgendered.
Gee, you would mess with deographics just to keep a toy store afloat? Where's your priority?
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