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Toys "R" Us Reveals Cause Of Bankruptcy
21 March 2018, 07:59 | Ruby West
A pedestrian passes in front of a Toys R Us Inc. retail store in New York U.S. on Thursday
Strategic Marks bought the KB Toys brand from Bain Capital in 2016, the same company that bought Toys R Us in 2006.
Last week, Toys R Us announced it would liquidate the inventory in its 735 USA stores.
Toys R Us Asia's joint-venture partner Fung Retailing, which owns approximately 15 per cent of the toy retailer's Asia-Pacific arm, has clarified that its 400 stores in greater China and Southeast Asia remain open for business. If you have any gift cards, use them now. "We believe we will have the infrastructure in-place and [hopefully] save the toy industry".
Interestingly, despite cut-throat competition among brick-and-mortar retailers everywhere, Toys "R" Us has never had any competitors with the same distinct brand recognition or product assortment.
More than 50 suppliers, including Barbie maker Mattel (MAT.O) and Lego, have objected in some form to the proceedings by the storied toy retailer to shutter up to 735 US stores and 30,000 jobs.
A Babies R Us store in downtown Manhattan preparing to close.
Phillips was not swayed by arguments by vendors that they would be better off if the Chapter 11 liquidation case was converted to a Chapter 7 liquidation, with the sale of assets placed in the hands of a court-appointed trustee.
When a store files for bankruptcy, gift card holders are out of luck or with limited options, says Horton, but she offered the following tips when it comes to buying gift cards.
"We're just as excited about the toys as the kids who come in", said Chip Honer, head of game development at Legacy Toys.
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