No More Toy Stores? Toys ‘R Us Going Bankrupt

toysrusclosing

Going, Going… GONE? Someday very soon, a simple trip to a neighborhood toy store may become a nostalgic memory from America’s past. In yet another startling measure of the growing number of consumers switching over to online purchasing, retailing giant, Toys ‘R Us, recently announced that it is seeking Chapter 11 bankruptcy protection. Though safe for now, all of the company’s colorful stores may soon be shuttered—and completely empty. (Photo: gettyimages)

Bottom Line: Toys ‘R Us (TRU), has officially filed for Chapter 11 bankruptcy protection (see complete details HERE). Sadly, we saw this event coming along YEARS ago. As more and more consumers have chosen to “shop” for bargains online and purchase their toys on the internet, web-retailing powerhouses such as Amazon and Walmart (and many, many others) have continued to drain away TRU’s financial stability and perilously erode its market share.

Indeed, TRU’s once-dominant, nation-wide chain of “brick-n-mortar” toy stores is now facing a dire and uncertain future. Faithful readers of The Joe Report will recall we first reported on TRU’s mounting fiscal woes waaaay back in 2014 (see that story HERE), and since that time, the company’s situation has only continued to weaken. It’s too soon to “call the game” on this sad story, and we’ll continue to monitor developments, but if current market trends are any indication, we don’t expect news to improve for America’s once mightiest—but now FAILING—toy chain.

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2 thoughts on “No More Toy Stores? Toys ‘R Us Going Bankrupt

  1. kneonknight says:

    This is a shame, because I spent many hours in their stores with my daughter, and taught her about comparison shopping and judging products based not only on price and appearance, but also on their construction and the manufacturer. Not only that, but my grandchildren (if I ever get any, HA!) will never know the fun of shopping in a real toy store, and the sense of joy one has when (excuse the alliteration) presented with a plethora of playthings.

    Just my two cents, but online shopping is not the main reason for Toys R Us’ demise. For the past several years, they have heavily relied on video games/consoles and franchise merchandise from movies – in stores in my area, the shelves are fairly crammed with Disney licensed products, many of which are from movies that are several years old, performed poorly at the box-office, or a combination of both. Add to that their purchase by another firm that is notorious for plundering the assets of recent acquisitions, and you have a guaranteed recipe for disaster.

    In closing, you will be missed Toys R Us, both by children and the child within all of us.

    • Amen. And this is probably just the tip of the iceberg, brick-n-mortar store-wise. As shopping online continues to increase, sales at physical stores decreases. Slot car and hobby stores are already a dying breed. Toy stores appear to be next. After that, the only place to “visit” to buy toys, etc. in person, may be gift shops at amusement parks. Bleah.

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