Toys R Us bankruptcy filing?

madforLEGO · September 2017

I will say this, if these toys line go away it will be a sad day for any developing kid. Maybe I'm in the minority here, but I feel that a big part of things like LEGO and Hot Wheels is much more beneficial than a touch screen for tactile experience when young and developing.

ReesesPieces · September 2017

ImABrickManNow said:

Man, I'm gonna cry if TRU goes bankrupt. I buy most of my Lego products from there.

With all rheir markups, will YOU also be filing for bankruptcy?

sklamb · September 2017

Frankly, I might have been a regular customer at my local TRU (which is much more convenient for me than the local Lego Store, despite the fact it really is a *local* Lego store) if it weren't for the frequent large markups. Even though they don't mark everything up they do mark up enough sets that I never feel confident buying anything there unless I know for a fact what the MSRP is, or it's a polybag.

Yes, that's probably because of their debt load etc etc. But if I have to give away some of my money in order to keep local brick-and-mortar enterprises going, it's going to be to bookstores.

samiam391 · September 2017

Zacharywathen97 said:

I think this article might help. It also says the toy industry is suffering in general due to tech becoming the next thing. It mentions LEGO briefly.
http://fox8.com/2017/09/18/toys-r-us-bankruptcy-fears-hit-mattel-and-hasbro-as-holiday-shopping-season-approaches/

Don't worry, I'll keep LEGO in business.

sklamb · September 2017

I think many of us will be doing our share to keep TLG profitable!

Intrigues me that the Lego themes which have least connection to computers, automation, licensed content, video games, etc are holding up at least as well as lines more closely connected to such things. Makes me suspect that children are still just as keen to play with real, physical objects as ever. There may be hope for us all yet....

catwrangler · September 2017

Zacharywathen97 said:

I think this article might help. It also says the toy industry is suffering in general due to tech becoming the next thing. It mentions LEGO briefly.
http://fox8.com/2017/09/18/toys-r-us-bankruptcy-fears-hit-mattel-and-hasbro-as-holiday-shopping-season-approaches/

It's interesting how they mention that TRU closed their big flagship NY store in Times Square, but opened a smaller, temporary one recently - basically a pop-up shop, and something I've also seen over here with other toyshops in the last few years. And again, often in the run-up to Christmas. I wonder if that's the way to go for some of these companies: smaller overheads, but still room for whatever are the most popular toy lines...

ecmo47 · September 2017

Maybe already linked but this Bloomburg article was interesting.

http://www.msn.com/en-us/money/companies/toys-r-us-creditors-saw-a-game-of-chicken-turn-into-dominoes/ar-AAseinn

One line that caught my eye was that some suppliers were refusing to ship product unless TRU paid cash. I wonder if Lego will continue to stock them. My guess is that they will considering the long partnership they have like the upcoming Bricktober minifig sets.

nuttamastabuilda · September 2017

sklamb said:

Frankly, I might have been a regular customer at my local TRU (which is much more convenient for me than the local Lego Store, despite the fact it really is a *local* Lego store) if it weren't for the frequent large markups. Even though they don't mark everything up they do mark up enough sets that I never feel confident buying anything there unless I know for a fact what the MSRP is, or it's a polybag.
Yes, that's probably because of their debt load etc etc. But if I have to give away some of my money in order to keep local brick-and-mortar enterprises going, it's going to be to bookstores.

My thoughts exactly. Gotta support brick-and-mortar.

Hopefully TRU survives this. TRU was the most consistent and fastest at getting CMFs and polybags to the shelves in my area. Their retailer exclusive GWP polybags, make-and-take sessions and Bricktober sets are things I don't see Target or Walmart doing. Unfortunately, TRU's large markups turned me off from buying more than the absolute minimum possible. That meant, I'd often wait until the GWP promo was over and try to buy the polybag outright.

Besides, where else would LEGO be able to offer such an awful #40228 Geoffrey giraffe set. Something about it made it a "must buy" for me. LOL

Chubbles · September 2017

news has me spooked, gonna use my gift cards and any pending rewards this week

datsunrobbie · September 2017

Toys R Us customer service is not helping them. I noticed this morning that one of the two purchases I made at the local ToysRUs last Thursday did not include the 10% discount for using their credit card. They emailed the receipts rather than giving me a printed copy at time of sale.
I contacted support via chat and was told it was a "store promotion", so I have to go back to the store to make a claim, despite having a big ad for the discount displayed beside the link for the chat. It is only $5, but the annoyance of having to print the receipt and remember to bring it on my next visit will be remembered for a long time, and now they will have to print my receipts in store for every purchase instead of emailing them.

ImABrickManNow · September 2017

ReesesPieces said:

ImABrickManNow said:

Man, I'm gonna cry if TRU goes bankrupt. I buy most of my Lego products from there.

With all rheir markups, will YOU also be filing for bankruptcy?

I sure hope not, how will I afford more Lego?!?! :P

SumoLego · September 2017

I find it amusing that because TRU arbitrarily chooses a day last week to announce they need protection for creditors, all of a sudden there are multiple stories regarding the 'sudden' demise of the toy industry.

TRU made a number of poor strategic decisions over the last decade - but the key cashflow issue is the debt payments from restructuring in 2005. @stlux

TRU sells product, and if the creditors still want payments, the doors will stay open. (As TRU does have an operating profit if you ignore the debt payments.)

I don't find the TRU staff particularly helpful, unless you are dealing with a store director. I once had an employee that refused to accept a return on an item because I had two reciepts. The store director was very nice and immediately refunded my money. (Once.)

Pumpkin_3CK5 · September 2017

As far as I remember, when the Tru by me was still a store and not a parking lot for used cars, there's a week or two when the toys are regular priced, especially when they're newly released.

bricknation · October 2017

Two suppliers stop deliveries to TRU UK. Probably just a matter of time before others follow.

http://www.telegraph.co.uk/business/2017/10/14/british-toys-r-us-shops-hit-supplier-fears/

Oldfan · October 2017

When I went into TRU last week to purchase enough stuff to get the Bricktober promotion, I was pleasantly surprised to see that most of the Lego sets were priced at RRP, and not +15% as usual. There were some exceptions, but generally RRP was the price point (and not the sale price; sale prices were even lower!). Definitely the lowest TRU prices for Lego I've seen in years, if not ever. My first thought was, this is the side effect of bankruptcy and not needing to pay your bills, but I'm sure it's more complicated than that...

MegtheCat · October 2017

All of the TRU stores in my area are hiring for the holidays, and even have a little paper that comes out with the receipt advertising this fact. So at least some locations are carrying on like usual.

Hanzo · October 2017

They'd be insane to not operate normal through Christmas. But they better pull out all the stops or this could be their last.

JooTog · October 2017

as of yesterday, my local store had a good stock on LEGO, except for TLNM which they had only a handful of sets.

I rarely go to any other section/aisle of the store, but did notice that they moved the Dimensions (and other toys to life) items back to the video game area.

Same as @Oldfan , I noticed that the sets I looked at where all RRP.

ggfile · October 2017

I don't believe for a second that TRU is shutting their doors. TRU is actually showing substantial profits from almost all of their stores in Canada/USA. The only reason TRU has filed for bankruptcy protection is because of old debt from many years ago that is so large, that the debt eats more than all of TRU's profits. By filing bankruptcy, TRU is able to dissolve this old debt, thus eliminating it permanently. Because TRU is actually showing profits from its stores, the bankruptcy adjusters have no interest in closing stores and liquidating stock. Believe me when I say that the adjusters would much rather receive RRP for the merchandise, so this means that TRU will not be closing their doors and instead are operating "business as usual". After 9 months, TRU will no longer be bankrupt and will no longer be in debt either, allowing TRU to thrive. The reason the flagship store closed, it was one of only a few TRU stores that was showing losses instead of profits. My point? Don't be surprised to not only see TRU still exist in 5 years, but to be showing record profits for its shareholders. If I had $$$, I would be eager to buy TRU stock right now. This is my opinion only!

PapaBear · October 2017

I'm not saddened for the company because I think they are inefficient, overpriced, and unprofessional, but I do feel bad for the 64,000 employees that may lose their jobs.

madforLEGO · October 2017

PapaBear said:

I'm not saddened for the company because I think they are inefficient, overpriced, and unprofessional, but I do feel bad for the 64,000 employees that may lose their jobs.

Don't worry, the leaders of the company will still get any golden parachutes or sell off any assets left and will land safely to destroy.. sorry, meant to say 'lead' another company...

KingAlanI · January 2018

I'm not so sentimental about TRU. The only retail experience I've really liked is the LEGO Store. I haven't gone much, but didn't have service problems when I did.
They already have trouble on price and the corporate overlords aren't helping. The location nearest me is still a few miles out of my way. The store not having WiFi makes it harder to look for what is a good deal.

teal93mr2 · January 2018

^And the point of that post is what exactly? Seems like millennial meanderings to me.

Astrobricks · January 2018

^ And the point of your post?

piratemania7 · January 2018

I read the article floating around somewhere that came out last week showing what stores are closing - a TRU and a Babies R Us in my state - which I believe will leave just 1 TRU in the state!

Anyway, I have read multiple articles lately (as I am sure many of you have) that points to various reasons why the demise of TRU is upon us. So @SumoLego I think hit on a big one with the debt and restructuring the articles went into how its a myriad of things - cleanliness of stores, the welcoming environment of the store/staff, a decline in general of actual physical toys (thanks to tablets and video games) and of course the competition from ahem *amazon* ahem - not to mention the increased online presence of Walmart and Target.

Ultimately, it will be a number of things that brings this one behemoth down - I just have those nostalgic (somewhat?) memories of when TRU used to be a bright. colorful and fun place to go, and it wasn't all that long ago!

PapaBear · January 2018

^ Yup, exactly why I don't go to TRU.

Closing 20% of their stores. New Jersey is losing almost 40%. It will be a slow death for TRU.

SumoLego · January 2018

I think TRU will survive. Despite being mismanaged and running a bass-akward website, there is value in a national toy store chain. TRU will contract in size and maybe only have one store pee market, but they'll still move plenty or product.

Wal-Mart and Target move a lot of product, but toys are just one of thousands of items in-stores. There needs to be a brick-and-mortar place for folks to buy toys.

NicksBricks · January 2018

If Best Buy can turn it around then there is potential for Toys R Us to do the same.

jmeninno · January 2018

^^Oh man, I could for for a one store pee market!

Fizyx · January 2018

SumoLego said:

I think TRU will survive. Despite being mismanaged and running a bass-akward website, there is value in a national toy store chain. TRU will contract in size and maybe only have one store pee market, but they'll still move plenty or product.

Wal-Mart and Target move a lot of product, but toys are just one of thousands of items in-stores. There needs to be a brick-and-mortar place for folks to buy toys.

Agree with this. TRU's main problem, by an enormous margin, was its debt load. Without that debt load it was a solid but not exciting company in terms of financial performance. And it's been made pretty clear that basically the entire purpose of the bankruptcy is to deal with that debt load. After they are out of the shadow of that, they will probably be fine even if they only made minor changes... and I think their closing under-performing stores and combining with BRUs shows that they are interested on making bigger changes to perform better in the future.

SumoLego · February 2018

jmeninno said:

^^Oh man, I could for for a one store pee market!

Autocorrect won that one, for sure!

jmeninno · February 2018

Ha, I had an error in my reply! For for? Meant to say go for!

PapaBear · February 2018

IDK bad debt is bad debt. Who is going to pay for all that debt? Mitt Romney?

Based on the last time Toys R Us was sold, it looks like it's debt is 3x as much as the toy store chain is actually worth. They've been paying $400 million just on interest every year. What a total waste of money. That's 3% of their revenue and if I had to guess it's close to 30% of their profit. Seriously, who is going to pay that debt?

There is value of a national toy store chain, but that value is mainly of concern to toy manufacturers. The only people I see willing to help TRU out is maybe Mattel, Hasbro, and LEGO. However, toy sales have been declining for everyone and that may become more severe down the road.

TRU suffered poor holiday sales last year when every other retailer reported record gains, especially Amazon. https://www.cnbc.com/2018/01/30/toys-r-us-poor-holiday-sales-cast-doubts-on-its-future.html

TRU also still paying mega bonuses: http://money.cnn.com/2017/12/06/news/companies/toys-r-us-executive-bonuses/index.html

I don't think the store closures will help TRU significantly. There are lots of crappy stores in my area that will still be open. It's sad to say, but they are going to have to cut lots of employees and somehow actually get people into their stores, which may require selling more than just toys. Just my opinion.

scotty12 · February 2018

I think TRU just needs to narrow down their selection somewhat. My only TRU closed in 2016 and when stuff was 75-80% off there were aisles left of old outdated merchandise. Mostly electronic gadgets. And I had a manager friend that worked there when it closed and showed my all the crap that was stored in the back rooms....2 aisles from floor to ceiling just collecting dust...and this wasn't a large store and not a Babies R Us, so it didn't deal with clothing. Have an idea what you want to be...selling toys, electronics, baby items. You can't have everything for everybody....unless your not into making money.

77ncaachamps · February 2018

MANCHESTER, CT (WFSB) -

A Toys "R" Us and a Babies "R" Us that were slated to close are no longer on the list of stores shutting down in Connecticut.

Last week, Toys “R” Us announced a plan to shutter a fifth of its U.S. stores including four in Connecticut.

The company initially said it planned to close the Newington Toys "R" Us, both stores in North Haven and Waterbury, along with the Manchester Babies "R" Us.

However, on Thursday, the Babies "R" Us Manchester and Toys“R”Us/Babies“R”Us Waterbury stores are no longer on the list.

Now the only two stores on the list are Newington and North Haven.

SumoLego · February 2018

TRU is BACK!

(I started laughing as I was typing this.)

KingAlanI · February 2018

@PapaBear the whole point of bankruptcy is to work around obligations like TRU's debt load, and if TRU can get along with that out of the way, then bankruptcy enables them to be successful again.

PapaBear · February 2018

that's a big IF

Astrobricks · February 2018

Store closing sales start today.

tcc · February 2018

LEGO excluded according to signs in stores.

Astrobricks · February 2018

tcc said:

LEGO excluded according to signs in stores.

Thanks for saving us all a trip.

datkidde · February 2018

Besides how much savings it 30% off the usual TRU markup? Not surprised they are losing business.

Astrobricks · February 2018

datkidde said:

Besides how much savings it 30% off the usual TRU markup? Not surprised they are losing business.

Also, the email said UP TO 30% off, so my hopes weren’t high in the first place.

willobee498 · February 2018

Remember, closing a store they still want maximum profit, so discounts start out minor and slowly ramp up. And seeing as only some stores are closing, they may just ship a bunch of merchandise to other locations.

juggles7 · February 2018

Most of the "construction toys", including Lego are just 10% off, the first day of the sale. At my store, the sale includes polybags and sets already marked-down for clearance. Some sets, like the 2018 Star Wars, are marked as not included in the sale. Not yet, anyway.

wagnerml2 · February 2018

10% off puts some of those sets still over RRP/

77ncaachamps · February 2018

That's why the focus should be on exclusives.

daewoo · February 2018

I went yesterday to one of the closing stores and asked when the Lego stuff would be included (their Lego section shelves were full). The employee didn't know. I'm going back tomorrow to check it out again.

77ncaachamps · February 2018

Any great snags out there?

piratemania7 · February 2018

I would suspect that as someone already said most of whatever doesn’t sell just goes straight to other stores that aren’t closing. The only thing is taking into considering for the corporate office what the cost is to move all that stuff versus just continuing to discount more and more perhaps every few days or week perhaps.

Logically however it makes sense to get rid of ad much as you can. Shipping product to another store can create another headache.

Toys R Us bankruptcy filing?

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