Toys R Us Files For Bankruptcy

[Hepcat]

Frankly, I was never impressed by TRU even as a kid. I always thought it was too big and I could never find anything (when I was a kid). I always much preferred the smaller toy stores in the malls (KB Toys and to an extend Lionel Playworld).

Yes, too big is right. And not just for kids but for adults too.

[Joseph_Baeza]

I'd like to reemphasize what AoF said, TRU is not going anywhere. They are just restructuring. They aren't even for sale. If I were TRU I would actually team up with Amazon and utilize their website and shipping.

Amazon does not need to partner up with TRU, and my guess is that Amazon or Wal-Mart will likely swoop in and purchase TRU within the next few years for cheap.  For all intents and purposes, TRU is effectively dead.  It really is unfortunate that the brick-and-mortar retailers we grew up loving did not have the business foresight to change with the times.  Even understanding that they could not compete in the online market with the Amazons of the world, TRU could have incentivized buyers with much better pricing, better selection, exclusivity to many of their items, and more competitive shipping options than the online giants could have offered.  But they didn't....and we see the result.  And I would agree that it's not a good thing for the next generation of toy buyers.       

[Remco Wolfman]

Amazon does not need to partner up with TRU, and my guess is that Amazon or Wal-Mart will likely swoop in and purchase TRU within the next few years for cheap.  For all intents and purposes, TRU is effectively dead.  It really is unfortunate that the brick-and-mortar retailers we grew up loving did not have the business foresight to change with the times.  Even understanding that they could not compete in the online market with the Amazons of the world, TRU could have incentivized buyers with much better pricing, better selection, exclusivity to many of their items, and more competitive shipping options than the online giants could have offered.  But they didn't....and we see the result.  And I would agree that it's not a good thing for the next generation of toy buyers.     

Amazon does not need to but they would take that deal. Identical to what they just did with Whole Foods and Nike.  Make a deal to offer your stuff on their website and Amazon keeps a portion of the profit. Amazon has almost no tangible wealth (buildings, inventory etc.) Almost their entire value comes from allowing other people to sell their stuff on the Amazon website (the exact opposite valuation Walmart has).

[1/6thtoyz]

Didn't Toysrus buy FAO Shwartz?

[aura of foreboding]

Didn't Toysrus buy FAO Shwartz?

Yes.

Toys R Us may be another Albertson's.  They went bankrupt about ten years back and now they own about half the grocery stores in the country.  It really is a big unknown.  Hoping they bounce back.

[Universal Steve]

Great article. Wouldn't it be great to get into a time a machne and step into a Toys R Us from the 80's. Actually, when I was growing up, a remember a store called Child World. Child World was like a Toys R Us. I still remmeber the feeling of walking in there. It was a huge toy store and being a little kid, it seemed like a whole other world.

thm

I actually worked at a Child World one Christmas season to make some extra holiday cash!  I had fun there!

[BRICK]

Frankly, I think Disney should just buy out TRU; after all, half the store is already stocked with Disney characters & properties! 

[aura of foreboding]

Frankly, I think Disney should just buy out TRU; after all, half the store is already stocked with Disney characters & properties! 

I was thinking this would be a good investment for them. 

[SpeedierThantheGrave]

Amazon does not need to but they would take that deal. Identical to what they just did with Whole Foods and Nike. 

I was going to mention this.  Amazon isn't a total monster:  They bought Whole Foods and right away started cutting prices.  TRU could definitely use some of that. ($2 off does not count as "Clearance," TRU... I get junk mail coupons with better savings.)  And yes, TRU will probably be around awhile longer.

I do miss KB Toys, that place was awesome. And those sale bins!  I remember saving my allowance and buying like the whole line of ToyBiz Ghost Rider figures for the cost of 1 new action figure.

[geezer butler]

Let's not forget Children's Palace either. Long gone.

Used to love that place

[AndyFish]

Chapter 11 doesn't mean they're closing as stated above, but this isn't the first time they've filed for restructuring protection.  If they don't come up with a solid plan to battle the forces of Wal*Mart and Amazon then they will go away, and probably deservedly so.  I don't go into their stores nearly as much as I did when I had kids (they are all grown now) but I stopped in recently to pick up a birthday present-- the store had plenty of help on the floor asking if I needed anything but when I got to the front the lines were insane and the cashier was ridiculously slow.  It took forever to check out.

Thinking this was an abnormalty I went in again a few weeks later and it was a complete repeat of the previous experience.  Wonder WHY I shop online?  This is why.

I don't shop at Wal*Mart-- it's like a third world market in there, no one speaks english and nobody is trained.  I had a MANAGER once tell a cashier she was going to have to wait to get change -- despite the fact that there were six or seven people being held up in her line waiting for a role of quarters.  What kind of service is this?

Wal*Mart might be kicking TRU rear in terms of pricing, but they're feeling the heat of online retailers too.

These retailers are shooting themselves in the foot by cutting front end training and service because it's a lot friggin' easier for me to pull out my phone and place an order on Amazon that will be here in two days than to wait what feels like two days in your line.

Then I can go outside and enjoy the nice weather.  These retailers make it so I DON'T want to shop there.

Contrast that with my favorite supermarket which makes it like a party when you go in-- samples out, a positive atmosphere and plenty of registers open.  You want to compete with online?  This is how you do it.

[Crossbonez74]

I think Toys R Us got themselves into this situation through bad customer service, poor stock, and failure to adapt to changing market trends.

I use to enjoy going in TRU but that was in the late 90's.  It's been a long time since I found in joy walking into a Toys R Us.

[YoungestMonsterKid]

So this is interesting.
Toys R Us, in fact made a lot of money last year. Actually what's going on has nothing to do with their sales. It has to do with equity firms which used Toys R Us as a pawn to have to suffer for their bad business deals in completely unrelated areas.

So basically, so many of you were blaming kids when it was actually old people's fault. As usual.

[Crossbonez74]

I agree, it definitely isn't the kids fault. Why go to a poorly stocked store where employees give less than a hoot? Only to get inside and find the item you are looking for isn't there.  Now you can skip all that and go on Amazon and pay less. Tell me why kids or parents would long for going to the store these days?

[Mord]

Let me explain. A lot of us don't like kids and will, unapologetically, blame them for everything (little basrards).