The liquidation of Toys “R” Us Inc. has sent the toy industry reeling, leaving Mattel Inc., Hasbro Inc. and other manufacturers without a large chain devoted to selling games and dolls and forcing them to scramble to secure other outlets to carry their items. Toys “R” Us is part of a group of chains that were once seen by vendors as “category killers” and have emerged as crucial checks on the power of Amazon.com Inc. AMZN, +6.17% Stores like Best Buy Co. BBY, +3.56% and Barnes & Noble Co. US:BKS provide electronics manufacturers and book publishers with vast networks of physical showrooms.
The placing of Toys R Us into liquidation – putting more than 30,000 jobs in jeopardy in the US alone – has also put toy manufacturers, including Mattel and Hasbro, at risk. In a statement to BuzzFeed News, Hasbro said: “While we are disappointed that our business is being forced out of business, it does not change what we stand for or how much we care about creating Amazon and Walmart are predicted to be the big winners from the demise of Toys R Us, potentially claiming 40% and 30% of its business, respectively, according to Jefferies.