Actionable insights straight to your inbox

logo_equities.svg

Toys ‘R’ Us Closes Last Two US Stores After Brief Return From Bankruptcy

ToysRUs.com remains operational, and more than 700 stores outside of the U.S. are still open

Image: Screenshot, Feb. 4, 2021. Source: toysrus.com

Toys "R" Us closed its two remaining stores in the U.S. after a failed attempt to relaunch the iconic toy chain, according to multiple reports.

Tru Kids Inc, which owns the Toys "R" Us and Babies "R" Us brands in the US, told The Associated Press that the closures of its stores at malls in Houston, Texas, and Paramus, New Jersey, in January stemmed from the ongoing COVID-19 pandemic.

Like other retail businesses, Toys R Us was hurt by mall closures last year and shifting consumer habits that prompted people to shop at big box stores or online.

In a statement, Tru Kids said, “We made the strategic decision to pivot our store strategy to new locations and platforms that have better traffic. Consumer demand in the toy category and for Toys R Us remains strong and we will continue to invest in the channels where the customer wants to experience our brand."

ToysRUs.com remains operational, and more than 700 stores outside of the U.S. are still open, CNN reported.

The two newly-shuttered stores, which opened in fall 2019, had a smaller footprint than the old Toys "R" Us stores and focused more on interactive experiences for brands than selling toys. Ultimately, the plan was to launch about 10 locations in malls across the country.

Toys "R" Us, buckling under pressure from Amazon.com Inc (Nasdaq: AMZN) and several billions of dollars of debt, had liquidated its stores in 2018 after filing for Chapter 11 reorganization. The chain later announced it would close or sell all of its 735 U.S. stores. 

_____

Source: Equities News

To say the current situation isn’t pretty now seems an understatement, and it’s likely to remain chaotic for a while. Which is why it’s so important for leaders of all kinds not to fall prey to the very human tendency to go negative, playing the blame game.
Bargain-hunting friends of mine have been asking: “Should I buy First Republic?” After all, First Republic is prestigious. Facebook founder Mark Zuckerberg got a mortgage there. Dozens of customer surveys rate its satisfaction scores higher than super-brands like Apple and Ritz-Carlton.
Many of us economy-watchers have been expecting recession, though with significant differences on odds and timing. Regardless, recent banking developments just made recession more likely and may have accelerated its onset.