What your credit union can learn from Toys R Us
- Author: David Armstrong Mar 21, 2018,
Mar 21, 2018, 8:00
If a purchase goes through, online competition will have officially ended Toys R Us.
"All of the remaining 75 Toys "R" Us and Babies "R" Us stores will remain open until further notice".
Once Toys "R" Us completes its recently-announced liquidation, it will leave more than 700 large, empty retail spaces throughout the US.
The New Jersey-based retailer said this month it would liquidate the inventory of 735 stores across the country, a maneuver that threatens the jobs of 30,000 workers and will weaken the financial results of toymakers such as Pawtucket-based Hasbro Inc.
The online giant, however, is not interested in maintaining the Toys "R" Us brand, but it will use the stores for its own purposes. In the USA, the toy industry has grown by 4.5% on average over the last three years. The company bought Whole Foods Market a year ago and also has a line of bookstores.
Toys "R" Us kids, it's time to grow up... Its Canadian unit is up for sale, along with its operations around the world.
Toys R Us is still hoping that it will be able to keep up to 200 USA stores open as part of a package deal to sell its Canadian operations.
Now those payments are at risk in a dramatic turn of events as the iconic toy retailer speeds toward USA liquidation.
Charles Tatelbaum, a bankruptcy lawyer with more than 50 years of industry experience, isn't as optimistic about the buyout options for its USA operation.
The end of Toys R Us could mean the resurgence of another long defunct toy store, KB Toys. It has no plan to keep the brand name, though, according to Bloomberg.