What used to be your favorite childhood haunt is going through some slippery time. Toys R Us, a name synonymous with the innumerous toy brands it stocks, closed 200 more stores in line with its reorganization under the Chapter 11 bankruptcy process.
With this move, the toy retailer would cut its store count to half from the total 800 US stores. Consolidation retailers such as Best Buy, Kohl’s, JCPenney, and the disruption giant Amazon bolstering their toy inventory seems to have taken a big chunk out of Toys R Us.
While Toys R Us might get some respite from its $5-billion long-term debts with this move, jobs of its very many employees hang in the balance. Market analysts expect the total store closure to affect about 8,000 employees.
Toys R Us closing 200 more stores might affect about 8,000 employees
The child-friendly retailer is also seeking bids for its European stores, with its move to put its British operations into administration as part of the bankruptcy process.
The winding down operations of a brand, whose shelves once housed many a toy that made its way into the rooms of generations of kids worldwide, has international implications. While the changing landscape in commercial retail could be the culprit, it is to be noted that the traditional big players and their reluctance to adapt to change catalyzed this process.
With more names to follow Toys R Us, we would soon see a polarizing sector with one end clearly nailed to the ground by the giant that is Amazon Inc.
Most Popular
Earnings Preview: Johnson & Johnson bets on innovation to stay in growth mode
Over the years, Johnson & Johnson (NYSE: JNJ) has remained a dominant player in the medical industry, benefitting from its unique business model and growth strategy focused on constant innovation.
Key takeaways from PepsiCo’s Q3 2024 earnings report
Shares of PepsiCo, Inc. (NASDAQ: PEP) gained over 1% on Tuesday even though the company delivered mixed results for the third quarter of 2024 and lowered its guidance for the
PEP Earnings: All you need to know about PepsiCo’s Q3 2024 earnings results
PepsiCo, Inc. (NASDAQ: PEP) reported its third quarter 2024 earnings results today. Net revenue dipped 0.6% to $23.3 billion compared to the same period a year ago. Organic revenue growth
Comments
Comments are closed.