It looks like the end is finally here. After news started swirling around last week, it looks like Toys R Us plans to draft plans to liquidate their remaining stores. It looks like the actual court hearing was delayed until Thursday according to Bloomberg. (more…)
Toys R Us plans to close 20% (182) of their stores as part of its Chapter 11 bankruptcy reorganization plan.
Going-out-of-business sales are scheduled to begin in February and be completed in April.
Check out the list below to see if your area is going to be affected.
UPDATE (11/16 12:40 PST):
Mattel (MAT) doesn’t appear to want to play with Hasbro (HAS). Both stocks are lower after Mattel reportedly rejected a takeover offer from rival Hasbro. Mattel told Hasbro the offer undervalues the company and didn’t factor in the potential rejection from anti-trust regulators. Mattel will reportedly continue to negotiate. (Yahoo financial)
It looks like Hasbro has their eye on Mattel once again. Many would think that the two companies combined would dominate the market. Realistically, the result of a combined Hasbro and Mattel would be a large company, but far from dominant in the fragmented toy industry. Together, they would control one third of the US market for traditional toys and games, and just 22% globally. The rise of companies such as Lego, Funko, NECA, Just Play, and others are starting to offer a counterbalance with their growing market share. (more…)
If you have had a chance to research Funko’s prospectus before their IPO, you might of thought the earnings were too good to be true. If you did, you weren’t the only one. Today, the law firm of Kirby McInerney LLP announced that it was opening an investigation of Funko, Inc. (NASDAQ: FNKO) concerning the Company and its officers’ possible violations of federal securities laws. If you are not aware, Funko commenced its IPO of 10,416,666 shares at a price of $12.00 per share on November 2, 2017. On November 3, 2017, the day after the IPO, Funko shares closed at $7.00, more than 40% below the IPO price. It was the worst opening day for an IPO in 17 years. It’s kind of crazy to think that the underwriters initially wanted to open at $14-$16. An article from Stephen Gandel over at BloombergGadfly gives you a great explanation of Funko’s “fun house accounting”. (more…)
We mentioned this possibility a few weeks back and now it’s finally here. Today, Toys R Us filed chapter 11 bankruptcy protection in an effort to save the iconic brand for future generations. Toys R Us said in a statement to customers that it is going to be business as usual at all it’s stores going forward. They also wanted to make clear that all of inventory and future orders from major toy makers won’t be scaled back in fear of the toy giant’s inability to pay. This couldn’t come at a worse time with the Holiday shopping season right around the corner. You can read Toys R Us restructuring plans here.