Fate uncertain for Toys R Us stores in Central Pa.

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Toys R Us has capitalized on selection and price. Many of its wounds were self-inflicted. Smart store owners will make sure many toys are at child eye-level. "It was not all about shopping, it was the experience, going in - it was the best place to hang out".

Retail chain operator Toys "R" Us Inc. filed a motion seeking bankruptcy court approval to begin the process of winding down its business and liquidating its inventory at 735 USA stores Thursday, one day after announcing its plans to shutter all of its locations.

"The brand name itself still resonates - it had been the largest specialty toy retailer for years", said Joe Feldman, senior managing director of Telsey Advisory Group, a consultancy. Toys "R" Us is searching for a potential buyer for its Canadian operations along with global operations in Asia and Central Europe, including Germany, Austria, and Switzerland.In Australia, France, Poland, Portugal and Spain, the stores are still serving the customer.

While Target does not report its toy sales separately, Reuters cited a marketing executive as saying a lack of other strong toy sellers most likely helped Target keep its "loyalists" away from Toys R Us.

A year later the company was taken private by KKR, Bain Capital and real estate firm Vornado.

The toy store faced several other big challenges at about the same time.

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According to Bloomberg, Toys R Us had hundreds of millions in debt it had to restructure this year for its USA operation, but it couldn't do that or find a buyer.

CEO David Brandon on Wednesday told employees the company's plan is to liquidate all of its USA stores.

The company is too generalized and spread out to compete against the increasing online and discount retailer competition, said Mark Satov, founder of Satov Consultants Inc.

But much of the chain's resources were devoted to paying off that massive debt load rather than staying competitive.

More than 700 USA locations remain, including Babies R Us stores.

"We carry things you wouldn't normally find in your bigger chain stores", Demille says.

What happens when a company declares bankruptcy?

Both toy companies get almost 10% of their revenue from Target too.

Brandon also vowed to spend more money on staff.

"Walmart doesn't have it. Target doesn't have it".

In its prime, Toys R Us had a multistory flagship store in Times Square and a mascot named Geoffrey the giraffe.

Momentum for the demise of the dedicated toy stores has been building for months, first with the announcement in February that 180 stores would close and then a report last week from Bloomberg that a bankruptcy was imminent. Last month it filed for the equivalent of bankruptcy for its United Kingdom operations, where it had 105 locations.



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