Toys R Us Files for Bankruptcy

[Hapori Tohu]

Some of the biggest toy news this week wasn't the fun kind; Toys R Us filed for Chapter 11 bankruptcy protection on Monday. There are many underlying issues contributing to this; inability to compete in the online marketplace, demand for traditional toys waning, and competition from other big-box chain stores. However, the major factor appears to be their massive debt, which they have been unable to pay off with declining revenue. Chapter 11 will allow them to restructure and ease their debt, and their stores will still be opened for the holiday season, so while Toys R Us isn't doomed, its future is uncertain. How this will affect their partnership with LEGO remains to be seen.

 

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[CHTrilogy]

Aw no! I used to go to one of their stores as a kid! I don't know what's going to happen to them now.

[You just lost the game]

Considering they were bought out with a leverage payment, it was only a matter of time. I'd reckon they'd still be in the mix if it wasn't for that.

Edited September 24, 2017 by You just lost the game

[ToaTImeLord]

I've been expecting something like this since G1 days.

There was never one near my location and they always overpriced there products online. Yes it's sad to them file bankruptcy but I'm surprised.