Toys R Us Could Go Bankrupt Soon
As a child, going in to a Toys R Us was such great excitement, because it is a giant toy store. I knew I was not able to take the store, but with a simple window shopping was good enough for me. Everyone knew Jeffrey the giraffe as soon as you passed by the Toys R Us store. Now that giraffe is broken hearted (not literally), Toys R Us is considering filling a chapter 11 bankruptcy protection. With big time competitors: Amazon, Ebay, and many online retailers, no wonder Toys R Us is struggling trying to make ends meet. According to the Wall Street Journal Toys R Us could go bankrupt within weeks as it struggles with billions of dollars in debt and mounting pressure from suppliers.
The global retailer has over 1,600 outlets as is planning to file a chapter 11 bankruptcy protection in the United States before Christmas. With a chapter 11, companies can stay in business as long as they reorganize and pay their creditors off. Sadly, the company had to reach out with investment bank Lazard to help manage its attempted refinancing.
Wall Street Journal reported that with suppliers fearing that the retailer may be in trouble, they are now tightening trade terms, including holding back shipments unless they receive cash payments on delivery. Last year, Toys R Us was faced with challenges during the holiday period of 2016 that made them fall behind.
Sadly, many retailers are faced with challenges such as not enough customers are buying any more. Many business owners are stuck with retail products of last year and need to sell it for half the price to a re-seller. The reality of it is that people are not going to stores any more. We are taking the easy option and ordering online, because it saves time, money, and gas. Many retailers entice us through emails, web advertisements, and discount coupons. According to what the person likes and searches, an ad, email or coupon will be modified to their taste. For more information on advertising your business, or ways to gain a website audience, please call me directly.