Attempts to “Find a Buyer” Evaporated
Prepare for the end, boys and girls…
It appears that Toy’s ‘R Us (TRU) has failed in its ongoing efforts to restructure its debt and will be forced into complete liquidation of its assets as early as next week. This will include the closing and selling off of its entire chain of U.S. retail stores. The profound economic “ripple effects” that will occur are sure to hit toy manufacturers hard, as well as an untold number of smaller toy companies and distributors. According to today’s article in the UK’s Daily Mail:
“It’s anticipated that toy manufacturers will suffer if Toys ‘R’ Us does liquidate in the U.S., as the company accounts for about 15 per cent of American toy sales. In addition, Toys ‘R’ Us was known for giving small companies and new products a chance, whereas other toy-selling retailers, such as Walmart and Target, prefer to go with tried-and-true merchandise.” —UK Daily Mail
Bottom Line: There’s not much more we can say on this matter at this point. Toy fans around the U.S. are surely aghast at the prospect of losing ALL of its Toy’s ‘R Us stores. We thought at least a few would remain open, but that appears to be wishful thinking on our part. If you’d like to read the entire article in today’s UK Daily Mail, jump HERE now.