Title: Going Out of Business – Toys “R” Us | The Connectere
Headings: Going Out of Business – Toys “R” Us
Going Out of Business – Toys “R” Us
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Content: The company had to pay $400 million per year to service its debt, an amount higher than its annual profits which made it impossible for the toy company to keep up. Such mounting levels of payments prevented it from introducing changes necessary to compete. For instance, it did nothing to improve the in-store experience or to maintain its store standards to compete with e-commerce giants. Most importantly, as the company struggled to pay its debts, the lenders exerted pressure and pushed the management to pursue a complete liquidation of its US business. Enduring the after-effects of the 2008 financial crisis, the company registered for an IPO in 2010, but the market stalled and sales continued to decline leading to the withdrawal of its IPO registration in 2013. Now the end was near. Toys “R” Us filed for bankruptcy in 2017. A motion to liquidate its business was initiated which meant either closing or selling almost all of its stores. It shut down its website and held mega sales to get rid of its merchandise and assets. It closed its Britain stores in March 2018, followed by shut down of US stores in June.