Toys R Us Unable to Survive Chapter 11 Bankruptcy
Closing all Nevada and U.S. Stores
On Friday, June 29, 2018, the end of a legacy in the toy industry will close its doors for the final time. After 70 years in business, Toys R Us will be no more. Unable to survive through Chapter 11 bankruptcy. Despite a last ditch effort in September 2017, the toy chain was unable to reorganize its debts in a Chapter 11 Bankruptcy to keep its doors open. Despite seeking debt relief, the stores will still close.
Toys R Us did not go quietly as a valiant effort was made to survive Chapter 11 bankruptcy. Toys R Us was unable to capitalize on the holiday season and secure a buyer to reorganize their debt. Once again a good store and good people are feeling the affects of overwhelming debt. Unable to overcome, the toy giant will not continue business.
While Chapter 11 Bankruptcy can often help businesses restructure their business and reorganize their debt; Toys R Us simply acquired too much debt after going private in 2005. Competitors also turned very competitive when news of the Chapter 11 filing became public. Major stores such as Target, Walmart, and Amazon offered lower prices and shipping discounts throughout the holiday season. Toys R Us was unable to compete since they rely solely on the sale of toys.
All hope may not be lost for toy lovers. Reports have surfaced that a former CEO of the store is considering taking another shot at reviving the company. Party City has also announced they will try to fill the toy void and take advantage of the closure by opening pop up toy shops in many locations. So while we will miss the Toys R Us giraffe, consumers will still have many options despite the failure of Toys R Us’ failed Chapter 11 Bankruptcy filing.