The hedge fund groups that have taken control of the Toys R US brand in the U.S. are looking to revive the company. According to reports in the Wall Street Journal (via CBR), they have cancelled plans to auction off the brand assets. The controlling lenders seem to have filed court documents revealing their intention to revive the Toys R Us and Babies R Us brands.
These are the same lenders who opted to close all 800 stores in June as opposed to reorganization. Though they received qualified bids for the brand assets, the lenders feel they can better revive the brand compared to those that had looked to take control. No concrete details were offered at the moment.
https://www.cbr.com/toys-r-us-revived/
I beat ya too it
I should get the news credit,
http://www.toyark.com/new-marvel-leg...2921-page1873/
I should get the news credit,
http://www.toyark.com/new-marvel-leg...2921-page1873/
I'm not personally too excited for this news. It's still a group of hedge fund guys running it. So I have no hope that customer experience will be a priority, simply stores that will exist just to exist and siphon off the last bit of brand recognition before it goes under again.
Not that the alternatives were much better, sadly. I have a feeling the top two bidders would have been Amazon and Walmart, and that would have just been a cannibalization of the brand assets into their existing corporate structures.
Here in Portugal ToysRus is an Iberian company which serves Portugal and Spain. They also filled for bankruptcy a few weeks later. Over the next months stores were not stocking and seemed that they were due to close.
But in August a private fund based in Portugal bought the biggest share of the company. But here as there it doesn't seem they will focus on customers. In fact they will not close any store or fire anyone which is good but I don't think it will go anywhere.
These big toy retail companies should hire people with love for toys and some toy market know-how. Corporate experience won't do anything for them at this stage where the paradigm is changing and you need a clear vision for toy stores. Needless to say that the most recent toy stores were opened by toy lovers with a proper online store.
In my opinion and talking about the toy store market here I think they have to streamline their portfolio. Most of the toys they have won't sell at all. They should focus on the normal major brands like Lego, Playmobil etc... but discard everything else. Make good promotions on the video games and have a section for collectors. Close many of the stores because online (if they do a proper job in the website) they can do more money and can sell the other stuff that is there just occupying room and collecting dust. They could also add a section for supplies such as paints, tools etc. Because they are bigger they can perhaps have better prices if they buy big quantities.
Maybe there is still some strong competition from major retailers if they do this in US, but in Europe and specially in Portugal its not the case so I'm sure this approach would be successful.
Remember all the noise about KB Toys being revived for the 2018 Christmas season and how it was totally a done deal? It's now October and I haven't heard shit about it in months.
This will go the same way. Toys R Us is done and it ain't coming back.
Not that the alternatives were much better, sadly. I have a feeling the top two bidders would have been Amazon and Walmart, and that would have just been a cannibalization of the brand assets into their existing corporate structures.
I almost never went to TRU when it was up and running for years, why would I suddenly go back now? If they priced everything more competitively with target and walmart then maybe.
they are bluffing, dont believe it
This will go the same way. Toys R Us is done and it ain't coming back.
I am concerned that the recent Hasbro poll means we're in for either a drop in quality or a price hike on Marvel Legends.
For me Legends are $21.99 at Target... like $22.49 at Walmart I think and $22.99 at Gamestop. The only places that are $19.99 are Best Buy and Walgreens, but actually finding a fig you want at those two stores are nearly impossible here. TRU used to be $19.99 for the normal singles, but there exclusives were jacked up to high heaven... like $5 to $8 markup.
EDIT: I would love for TRU to comeback though if it meant Joes were coming back too. I don't think 3.75" retail Joes can exist without TRU.
Believe it after I see it. Halloween City is in the TRU space here right now.
CCC.
"Pull the other one!"
I just hope that they don't overprice the toys like they use to.
CCC.
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