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Toys R Us To Close All 800 of Its US Stores (washingtonpost.com)
Toy store chain Toys R Us is reportedly planning to sell or close all 800 of its U.S. stores (Warning: source may be paywalled; alternative source), affecting as many as 33,000 jobs as the company winds down its operations after six decades. The Washington Post reports: The news comes six months after the retailer filed for bankruptcy. The company has struggled to pay down nearly $8 billion in debt -- much of it dating back to a 2005 leveraged buyout -- and has had trouble finding a buyer. There were reports earlier this week that Toys R Us had stopped paying its suppliers, which include the country's largest toy makers. On Wednesday, the company announced it would close all 100 of its U.K. stores. In the United States, the company told employees closures would likely occur over time, and not all at once, according to the source, who spoke on the condition of anonymity because they were not authorized to discuss internal deliberations.
This is not surprising (Internet, etc. etc.). However, few things can compete with the sheer joy I had as a child when given the rare opportunity to roam the aisles of a Toys R' Us to discover, touch, test, and play with the toys. The "aisles" of Amazon are a poor substitute for a child.
All the Toys R Us kids have grown up.
They died due to greed from owners and investors:
"KKR, Bain and Vornado purchased Toys "R" Us in 2005 in a $6.6 billion leveraged buyout, but more than $5.3 billion of the purchase price was paid using debt."
8 billions of debt, at least 5.3 purely due to the buyout. Maybe their future wouldn't be so good with Internet, etc. but it's not what killed them today, the leveraged buyout did.
In this case it is deliberate bankruptcy. The 80s corporate raiders never retired, they became private equity firms. They buy companies and let them fail under the weight of debt servicing (the debt being serviced, for good measure, was incurred in order to buy the company). The only people who lose are the complete idiots who finance these takeovers -- oh, and everyone who works at the company in question.
Their toys are mindless un-fun corporate shit.
My kids are always bored there. We've found much more fun toys at Target, not to mention Amazon.com, whatever you think of both companies. We bought a potato-driven clock and a home-terrarium kit on Amazon.com for under $10 each that the kids enjoyed. They get TinkerCrate which they also enjoy, and I consider it expensive at $29 a crate. But walk into a Toys'R'Us and all you can get is 8" plastic action figures in garish colors for $49.99 each.
Toys'R'Us should be called AMillionFlashyBrandedOverpricedActionFigures'R'Us.
At least near us, the two stores had no science kits, no craft stuff, no learning toys to speak of, no building toys to speak of, no creative toys of any kind. The best section were bikes and skateboards in the back. The rest is literally wall-to-wall action figures from cartoons that my kids have never heard of because cartoons are so twenty years ago and we don't have TV. They are much more interested in apps than in TV.
Toys'R'Us is selling toys from decades ago—thousands of them, all the same, and for 4x what they ought to cost.
STOP . AMERICA . NOW
Must've been ten years ago because my daughter was four, a couple weeks after Christmas they wouldn't let her exchange a duplicate toy with a copy of the receipt because her grandmother (300 miles away) was the purchaser.
Everybody involved was pissed or upset except for the smarmy clerk who was delighted to disappoint by enforcing corporate policy. I hope she got a promotion and stayed with the company.
Since then she's had an Amazon wishlist and sometimes gets Walmart gift cards. Because both of them (especially Amazon) do a petty good job with customer service.
Toys R Us will say that Walmart and Amazon killed them - but in reality they self-destructed.
My God, it's Full of Source!
OUTSIDE_IP=$(dig +short my.ip @outsideip.net)
Sears another old company that is dying ;) Some brick and mortar will survive in urban areas. But the real retail sales numbers will be online sales. Especially in rural America, online sales (Amazon) is the new Sears. Sears could have done it, but they did not see that vision of an online future. Like most entrenched old players. They got to comfortable. An upstart had to come in with a new vision.
The sad part is that Sears should have cleaned up when it came to the Internet. They had all the pieces to become what Amazon is today. Back in the days of yore, they had one of the most impressive computing systems to run their inventory management/prediction/ordering of any retail corporation. They also ran one of the early online services, Prodigy (along with IBM).
And then, they rested on their laurels, and suffered the fate that they have. If anything, they should have converted their catalog system to the Internet, and started to shutter their retail operations. But they didn't.
...si hoc legere nimium eruditionis habes...
My mom used to work at Children's Palace (https://en.wikipedia.org/wiki/Child_World), which was a competing toy store in the 80's. Toy R Us would build their stores right next to them to try to put them out of business. When the weekly flyers came out for sales on things like baby food and diapers, Toys R Us would send their employees over to Children's Palace to buy up all the sale items in the flyer so that they were out of stock, causing angry customers - many of whom were low income. Toys R Us minions would sometimes just throw away the merchandise in the trash outside the store after their raids. My mom had a lot of stories about their guerrilla retail tactics. Toys R Us eventually won out and Children's Palace went out of business, but my parents never let us go there. Bankruptcy couldn't have happened to a more deserving company, albeit 30 years too late.