Toys R Us Bankruptcy

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Toys R Us Bankruptcy

#1

Post by Tiredretiredlawyer » Sat Apr 14, 2018 10:56 am

https://www.msn.com/en-us/money/compani ... smsnnews11

I have been watching this for a while. Toys R Us is the largest toy retailer in U.S., Canada, and Asia.
Billionaire bids $890 million to help save Toys R Us

Billionaire Isaac Larian, the toy marketer whose lineup includes Little Tikes and Bratz dolls, offered to save part of Toys "R" Us from liquidation with an almost $900 million bid for stores in the U.S. and Canada.

The would-be rescuer is the chief executive officer of MGA Entertainment Inc., which sells toys including L.O.L. Surprise! and Baby Born. Larian previously started a GoFundMe campaign to help keep Toys “R” Us open, with the page now showing pledges of $200 million from Larian and other investors, and an additional $58,998 from various public contributions.

Toys "R" Us has until April 16 to notify Larian and any other bidders whether their offers are sound enough to be part of an auction. Under bidding rules approved by a bankruptcy judge, bidders must meet certain minimum qualifications.

Should Larian win the auction, his bid would need approval from a bankruptcy judge and could face opposition from lenders if the value falls below rival bids from firms bent on liquidating the retailer.

The court rules say a company must accept the bid that offers the “highest and best” value, which will sometimes lead to a fight in front of the judge over which bid meets that definition. If a lower-valued offer keeps the company alive and saves jobs, the bidder can try to argue it should prevail over a higher-paying competitor.
The case is Toys “R” Us, 17-34665, U.S. Bankruptcy Court, Eastern District of Virginia (Richmond).


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Re: Toys R Us Bankruptcy

#2

Post by Notorial Dissent » Sat Apr 14, 2018 11:11 am

I think it is a case of throwing good money after bad. The generation that spawned and supported TRU are now worrying about retirement and the generation(s) that followed them isn't interested. The business model (obviously) has NOT been working for several years now.


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Re: Toys R Us Bankruptcy

#3

Post by tek » Sat Apr 14, 2018 4:40 pm

I honestly don't know how toys are selected and bought these days.

daughter.tek (born late 1980s) used to love going to TRU.. She pretty much wouldn't beg for us to buy her something, but rather she'd check everything out.. she could spend hours there (which was good for we parents; we really didn't care about the toys, but everybody was content).. she might, on the way home or weeks later, say "I think I'd really like X" ..

yes, she had a Geoffrey plush ;)

My gut feeling is that TRU has been contracting (at least around here) for at least a decade.. We as a family have somewhat fond memories, but we also have good memories of (the pre-chain) Lechmere and (the one and only) Spag's .. I think the world has moved on :(


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Re: Toys R Us Bankruptcy

#4

Post by maydijo » Sat Apr 14, 2018 5:50 pm

I thought this only impacted the US and Canadian Toys R Us? I know the Australian shops aren't going bankrupt. Generally what happens is that the name is licensed overseas, but the shops themselves are independently owned and have nothing to do with the US parent company.



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Re: Toys R Us Bankruptcy

#5

Post by kate520 » Sat Apr 14, 2018 6:06 pm

When they announced the big final sale for the Toys R Us in our town, there was a post on the Monrovia Facebook group. Being older, I guess I hadn’t realized the huge part Toys R Us played in most everyone’s lives. Heartbroken men wailing about how they were looking forward to taking their infant sons just like their dad’s did with them. My attitude has always been more of disdain for the cheap Chinese stuff, but hearing those sentiments...I remember how I felt about the Mickey Mouse Club when I was 6. It’s a warm fuzzy memory. Now, I hope the buyout succeeds.

Have we talked about this before? I can’t tell from this article whether Mitt was involved in either incident or had already moved on.
Bain Capital has a knack for throwing big toy retailers into bankruptcy.

The buyout firm founded by Mitt Romney — which got slammed this week by the Chapter 11 filing of Toys ‘R’ Us — also saw its reputation dinged a dozen years earlier with the shuttering of KB Toys, which at the time had been the nation’s second-biggest retailer.

In both instances, critics say Bain and its private-equity partners left the chains vulnerable by saddling them with heavy debt loads as they took them private, crippling their capacity to compete in brutal price wars that have dogged the industry.

In the case of mall-based KB Toys, Bain execs blew off competitive threats from big discounters like Walmart and Target in the niche. Toys ‘R’ Us, meanwhile, has faced additional pressures from Amazon, as well as kids’ increasing fascination with playing games on phones and tablet devices instead of physical toys.

“The owners look as though they decided to bleed Toys ‘R’ Us instead of keeping them relevant,” Brian Devine, who was a top executive at Toys ‘R’ Us in the 1980s, told The Post.


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Re: Toys R Us Bankruptcy

#6

Post by Whatever4 » Sat Apr 14, 2018 6:13 pm

tek wrote:
Sat Apr 14, 2018 4:40 pm
I honestly don't know how toys are selected and bought these days.
:mememe:

I used to be a toy buyer. About 1980 to 1995. TRU and the big guys are a completely different animal than the shops I bought for though.

Toys R Us was doomed once Walmart and Target came after them. Before TRU, there were toy departments in fancy department stores and small retailers. TRU came in and dominated with huge purchases, coop advertising, and huge stores. They dominated. But then Walmart and Target and some regionals decided to use toys as loss leaders. Get the parents in the door, sell them advertised product at cost or slightly above, make it up on the rest of the goods in the store. TRU started out competing on price, couldn’t survive.

I remember going around NY ToyFair behind a TRU team once. Mattel and Hasbro would pitch what they wanted to sell, TRU would decide what they’d buy, and anything else was pretty much pulled from the catalog.


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Re: Toys R Us Bankruptcy

#7

Post by Sam the Centipede » Sat Apr 14, 2018 9:21 pm

W4 identified on one key reason in TRU being in trouble: its toys are the same as every other store's toys (both brick stores and digital stores). It couldn't slash prices to the bone because it had to service huge debts and expensive real estate. With unattractive prices and no special offering or ambience, its potential customers weren't going to hand over their dollars.

And that's without the changes in young kids' toy/play habits.



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Re: Toys R Us Bankruptcy

#8

Post by Kendra » Sat Apr 14, 2018 9:25 pm

Haven't seen Trump shaking his fists in rage over another business failed due to the meanies at Amazon.:sarcasm:



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Re: Toys R Us Bankruptcy

#9

Post by maydijo » Sat Apr 14, 2018 9:43 pm

I am not a toy expert, but I have an addiction to Christmas which extends to looking old Christmas wish books. What surprises me is just how little toys have changed. Sure, there are different types of toys, but they still roughly fall into the same categories as they did when my parents were kids. As any parent will tell you, there are just so many of each category you need - and in our house, this number was reached when our kids were still toddlers. I can't say I'm surprised toy stores are struggling because there is just nothing out there worth buying, once you reach that point. (And if you're cheap like me, you can find perfectly good toys in excellent condition for a fraction of the price in second hand shops.)

What is also surprising is how cheap toys are now compared to my childhood or my parents' childhoods. I remember finding a doll my older sister had in a Sears Wishbook from the mid-70s. That thing cost the equivalent of about $70 in today's dollars. It was a Holly Hobby rag doll, so it was a hot brand, but without the flexibility of something like an American Girls doll which is equivalent in price today. Toys that I played with as a kid were the equivalent of $30 today - things like Pound Puppies which fit in the palm of my hand. I can get cuter, bigger stuffed dogs, brand-new, for around $5. No wonder we reached toy saturation point so quickly!

My kids are 9 and 11 now and haven't wanted to play with toys in a few years. There are just so few "prime toy years" and so little diversity in the offerings, it can't be an easy market.



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Re: Toys R Us Bankruptcy

#10

Post by Notorial Dissent » Sat Apr 14, 2018 10:56 pm

The TRU bankruptcy extends clear across the board, the UK stores are ALL either gone or are going, and I'm pretty sure for all the same reasons as the US versions there and in other countries.

I think that two of the factors are, as I said previously, changing tastes and habits, AND the financial mess they were left in when they went private.

I also agree that they lost their uniqueness and couldn't compete when the big chains started doing the same thing they were. I was never a fan, but I can understand why two generations were.


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Re: Toys R Us Bankruptcy

#11

Post by maydijo » Sat Apr 14, 2018 10:58 pm

Australian stores aren't affected.



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Re: Toys R Us Bankruptcy

#12

Post by Volkonski » Sun Apr 15, 2018 11:30 am

maydijo wrote:
Sat Apr 14, 2018 10:58 pm
Australian stores aren't affected.
Is that because-

The Guardian

@guardian

Australia doesn’t exist! And other bizarre geographic conspiracies that won’t go away
https://
trib.al/O3b0Jnm

9:23 AM - Apr 15, 2018
:o :shock: :o :shock: :o :shock: :o :shock:
Australia doesn’t exist. The signs were there the whole time: in what country is the only thing more poisonous than the snakes the spiders? How did we ever believe that kangaroos were a thing?
That would explain a lot.

:rotflmao:


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Re: Toys R Us Bankruptcy

#13

Post by Tiredretiredlawyer » Sun Apr 15, 2018 12:09 pm

1. Australia doesn't exist.
2. Maydijo lives in Australia.
3. Maydijo doesn't exist.

OMG!!!!! Maydijo is a BOT!!!!!!! NOT that there's anything WRONG with that.


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Re: Toys R Us Bankruptcy

#14

Post by MN-Skeptic » Sun Apr 15, 2018 12:37 pm

Tiredretiredlawyer wrote:
Sun Apr 15, 2018 12:09 pm
NOT that there's anything WRONG with that.
:lol:


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Re: Toys R Us Bankruptcy

#15

Post by EastStander » Sun Apr 15, 2018 3:14 pm

Here in the UK, TRU has also gone down the pan. I don't often have to buy toys for anyone now, but when I did go in one of these stores recently, I was struck with how tawdry, cheap and plasticky the products (and the entire store for that matter) looked. Probably an unfortunate consequence of the British obsession with getting a 'bargain' at the expense of anything else, such as a pleasant shopping experience. But on the other hand, it may have seemed like that because I am a grumpy old git.



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Re: Toys R Us Bankruptcy

#16

Post by tek » Sun Apr 15, 2018 4:21 pm

nowadays when I need to buy a toy, I go to a place like https://a2zscience.com/

I don't know how much longer places like that will still be around :(


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Re: Toys R Us Bankruptcy

#17

Post by maydijo » Sun Apr 15, 2018 4:55 pm

Tiredretiredlawyer wrote:
Sun Apr 15, 2018 12:09 pm
1. Australia doesn't exist.
2. Maydijo lives in Australia.
3. Maydijo doesn't exist.

OMG!!!!! Maydijo is a BOT!!!!!!! NOT that there's anything WRONG with that.
Dammit, you blew my cover. Okay, time to come clean. I'm part of Putin's next push. Phase one is to pass myself off as a liberal to gain your trust. Then, slowly, my mission is to influence your opinion until you believe in your glorious leader. If I do my job properly,by 2024 you will be marching in the streets demanding he is declared your king, with Ivanka as his heir. (We Russians like having someone we can control, but Jr is too annoying even for us.)



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Re: Toys R Us Bankruptcy

#18

Post by kate520 » Sun Apr 15, 2018 5:04 pm

This was our favorite toy store b4 Sprout discovered TRU

http://www.dinosaurfarm.com

The owner, Dave, was a jazz musician with a palor the dead would envy, but he built the best independent toy store around.


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Re: Toys R Us Bankruptcy

#19

Post by Chilidog » Sun Apr 15, 2018 5:11 pm

Off Topic
Does anyone remember when Toys R Us used to be "Bargantown?"
Off Topic
in the Chicago area we used to have a place called "Dispensa's Castle of Toys"



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Re: Toys R Us Bankruptcy

#20

Post by Whatever4 » Sun Apr 15, 2018 5:51 pm

tek wrote:
Sun Apr 15, 2018 4:21 pm
nowadays when I need to buy a toy, I go to a place like https://a2zscience.com/

I don't know how much longer places like that will still be around :(
There were several “educational toy” chains in the 90s that competed themselves out of existence: Learningsmith (my stores), Zany Brainy, Noodle Kadoodle, and Learning Express were the biggest. All gone, maybe 500 store total.

The biggest problem i have with the toy industry is the Hot Toy that everyone Must Have. Walmart and Target and TRU had them. The smaller stores couldn’t compete on price so they didn’t carry them, but gave up the traffic of people looking for them.

Good mom and pop toy stores are awesome. Close to their consumers they can tailor themselves to local expectations. I want one.


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Re: Toys R Us Bankruptcy

#21

Post by maydijo » Sun Apr 15, 2018 5:54 pm

My kids have never wanted the hot toy. I think it's because here in Rustralia we have the ABC channels which have ad-free kid's TV shows. My kids hate watching the other kid channels, the ads drive them nuts!



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Re: Toys R Us Bankruptcy

#22

Post by Chilidog » Sun Apr 15, 2018 5:54 pm

We brought stuff for my son at Noodle Kaddoodle

It was great



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Re: Toys R Us Bankruptcy

#23

Post by RTH10260 » Sun Apr 15, 2018 5:58 pm

Tiredretiredlawyer wrote:
Sun Apr 15, 2018 12:09 pm
1. Australia doesn't exist.
2. Maydijo lives in Australia.
3. Maydijo doesn't exist.

OMG!!!!! Maydijo is a BOT!!!!!!! NOT that there's anything WRONG with that.
But Russian? We need more long form birth certificates ;)



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Re: Toys R Us Bankruptcy

#24

Post by Tiredretiredlawyer » Sun Apr 15, 2018 6:09 pm

maydijo wrote:
Sun Apr 15, 2018 4:55 pm
Tiredretiredlawyer wrote:
Sun Apr 15, 2018 12:09 pm
1. Australia doesn't exist.
2. Maydijo lives in Australia.
3. Maydijo doesn't exist.

OMG!!!!! Maydijo is a BOT!!!!!!! NOT that there's anything WRONG with that.
Dammit, you blew my cover. Okay, time to come clean. I'm part of Putin's next push. Phase one is to pass myself off as a liberal to gain your trust. Then, slowly, my mission is to influence your opinion until you believe in your glorious leader. If I do my job properly,by 2024 you will be marching in the streets demanding he is declared your king, with Ivanka as his heir. (We Russians like having someone we can control, but Jr is too annoying even for us.)
"Now we know and knowing is half the battle!" - (male chorus sings, "G.I.Joe!"


"The people must know before they can act, and there is no educator to compare with the press." - Ida B. Wells-Barnett, journalist, newspaper editor, suffragist, feminist and founder with others of NAACP.

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Re: Toys R Us Bankruptcy

#25

Post by Foggy » Sun Apr 15, 2018 6:22 pm

Phase 1 is going great. :dance:


Mr. William L. Bryan is the root of a great deal of criminal mischief. And yet, Mr. Bryan remains at large.

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