It was revealed by Business Insider today that Toys R Us is considering filing for bankruptcy as part of its debt restructuring plan. Toys R Us has about $400 million due in debt for 2018. Having personally worked there for a few Christmas seasons, this isn’t a surprise.
While busy for month, it’s just not enough to support the brick and mortar for the other 11 months. And it doesn’t help each season performs worse then the previous. With the rise of online retail, like Amazon, consumers have more choices at lower prices. Another take away from this news is that we can, at least, expect a few stores to be closing soon. It’s usually one of the first steps retailers take when trying to reduce overhead while clearing out debt. This is also bad news for toy companies like NECA who primarily use Toys R Us as their main brick and mortar retailers. You can check out the whole article from Business Insider here.
Let’s just hope their hired guns can navigate them through this mess with out the need for filing for bankruptcy.