Tag: Greg Portell

Amazon didn’t kill Toys ‘R’ Us. Here’s what did
Unemployment

Amazon didn’t kill Toys ‘R’ Us. Here’s what did

And that meant an unpleasant shopping experience that doomed the chain.
The company told employees Wednesday that it would close or sell its US stores after 70 years in business.
Last year toymakers Mattel (MAT) and Hasbro (HAS) each sold about $1 billion worth of their toys at Walmart, more than twice as much as what they sold through Toys “R” Us.
And like most retailers, Toys “R” Us also lost sales to online rivals such as Amazon that offered lower prices and quick shipping.
When Toys “R” Us filed for bankruptcy in September 2017, it disclosed it had about $5 billion in debt and was spending about $400 million a year just to service that debt.
Brandon said in a filing last fall that the bankruptcy process would allow it to invest $65 million in its stores. “Better employees make for happier customers,” Brandon said in the filing.
Despite sharply declining sales, Toys “R” Us was also extremely late to the game in closing stores.
At the time of its bankruptcy filing, the chain had 1,697 stores — more than it had ever had.
On Wednesday, hours before announcing the decision to close its US operations, it said it would close the last 75 UK stores.