Toys R Us Files For Bankruptcy. What it Means For Idaho Stores
Toys R Us, because of large amounts of debt, much of which is coming due soon, has filed for Chapter 11 bankruptcy protection. What does this mean for our Meridian store?
Toys R Us claims that in the short term, their approximately 1600 stores will remain open and in business, including their Boise location near the Boise Town Square. According to an article in USA Today, Toys R Us is working with their suppliers to make sure their shelves remain well stock, ahead of the upcoming all important holiday shopping season. The company receives almost half it’s profits for the entire year during the Christmas shopping season
Toys R Us is such an iconic toy retailer, it’s hard to imagine a store that has become a household name for a generation having to file for bankruptcy, but unfortunately they aren’t the only brick and mortar store to have financial troubles. Payless Shoe Source, Wet Seal, and Gymboree are among the dozens of others traditional brick and mortar chains who have also filed for bankruptcy in the past year as they try to solve the problem of how to compete with Amazon, Jet.com and other online retailers.
Chapter 11 bankruptcy allows companies to restructure debt, in an effort to stay in business, but with over 5 billion in reported long term debt, it won’t be something that happens quickly.
According to USA Today, “the bankruptcy could also give the toy store chain relief, enabling it to cancel leases and abandon poorly performing locations.”
The good news for those of us who are huge Toys R Us fans and shoppers at their store in Boise is that at least in the short term, we shouldn't see any difference in our shopping experience. The long term is still up in the air. I for one hope they don't go away.