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Toys ‘R’ Us Seeks Bankruptcy, Crushed by Online Competition
By Dawn McCarty
September 19, 2017, 11:42 AM GMT+8 Updated on September 19, 2017, 1:10 PM GMT+8
Toys “R” Us Inc. filed for bankruptcy as the retailer, loaded with debt in a buyout more than a decade ago, failed to keep consumers from abandoning its stores for the lower prices and convenience of online shopping.
The company listed debt and assets of more than $1 billion each in Chapter 11 documents Monday in U.S. Bankruptcy Court in Richmond, Virginia. Prior to filing, the chain secured more than $3 billion in financing from lenders including a JPMorgan Chase & Co.-led bank syndicate and certain existing lenders to fund operations while it restructures, according to a company statement. The funding is subject to court approval.
The company didn’t announce plans to close stores, and said its locations across the globe would continue normal operations.
More details in https://www.bloomberg.com/news/articles/...ompetition
Specuvestor: Asset - Business - Structure.
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toyRus didn't evolve.... they should have started buying the stores, instead of leasing...
they also need to muscle into online presence and use their stores as distribution centres..
a case of too rigid biz managers? :O
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR!
4) In BULL, SELL-SELL-SELL!
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it's so easy to check prices of toys we find at a Toy 'R' us store against prices on Amazon by scanning the standardised barcodes.
The showrooming phenomenon must be hitting such retailers hard.
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19-09-2017, 10:20 PM
(This post was last modified: 19-09-2017, 10:21 PM by CY09.)
Not just that.
" ...crushing debt load from a buyout"
Along this line, when Toy r US was taken private, its brilliant investors laden the company with debts. With increasing competition from online retailers, it became more and more difficult for the company's revenue to service its debts obligations. And with bonds maturing soon, they did not have the cash to redeem it.
It is similar to the plight of many O&G companies due to mounting debts and declining business environment
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Toys ‘R’ Us Is Prepping to Liquidate Its U.S. Operations
By Lauren Coleman-Lochner , Matthew Townsend , and Eliza Ronalds-Hannon
March 9, 2018, 5:15 AM GMT+8 Updated on March 9, 2018, 6:29 AM GMT+8
Toys “R” Us Inc. is making preparations for a liquidation of its bankrupt U.S. operations after so far failing to find a buyer or reach a debt restructuring deal with lenders, according to people familiar with the matter.
While the situation is still fluid, a shutdown of the U.S. division has become increasingly likely in recent days, said the people, who asked not to be identified because the information is private. Hopes are fading that a buyer will emerge to keep some of the business operating, or that lenders will agree on terms of a debt restructuring, the people said.
The toy chain’s U.S. division entered bankruptcy in September, planning to emerge with a leaner business model and more manageable debt. A new $3.1 billion loan was obtained to keep the stores open during the turnaround effort, but results worsened more than expected during the holidays, casting doubt on the chain’s viability.
More details in https://www.bloomberg.com/news/articles/...operations
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20-11-2018, 09:18 PM
(This post was last modified: 20-11-2018, 09:19 PM by weijian.)
NPM is slightly greater than 10%, which is actually a pretty decent retail business.
Toys 'R' Us Asia just wants to grow up
The management would not disclose the share of contributions from operations here. But corporate records show that Toys "R" Us (Singapore) reported S$8,047,818 in post-tax profit for the year to Dec 31, 2017, up by 32.8 per cent on the previous year, on S$77,245,219 in revenue.
https://www.businesstimes.com.sg/compani...to-grow-up
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Cannot imagine buying toys online. The fun and excitement in buying toys is being able to browse through a wide variety selection, pick up something you like and inspect it, compare it against the others, and then convince your parents how awesome it is.
I'm still sceptical of the market for e-commerce, and its purported destruction of physical retailers. Eventually, the market will be shared by both models, just as it had been for e-books and physical books.
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