Toys ‘R’ Us is about to become “Toys ‘R’ was” as all of its 900 stores are set to close across both the UK and the US.
The store, which filed for bankruptcy in both countries over the past six months, couldn’t find a buyer for its UK operation, while it also filed an motion to begin “an orderly wind-down” of its US business.
Reports suggest that stores in Australia, France, Spain and Poland won’t be far behind either and are likely to be liquidated. However, if you’re Canadian there may be some good news as this arm of the business is working on a deal to save the stores there.
This occurrence is one of the clearest indications that the toy industry is moving away from “brick and mortar” to online, where overall costs are much lower and thus lower prices can be offered to consumers.
CEO David Brandon said,
“This is a profoundly sad day for us as well as the millions of kids and families who we have served for the past 70 years. I am very disappointed with the result, but we no longer have the financial support to continue.”
Spiraling costs, as well as online competition are thought to be the reasons behind Toys ‘R’ Us’ demise.
Nonetheless, it’s still a sad day for anyone who spent time running through the aisles of their stores picking out all the latest and greatest toys that they wanted to add to their wish list.
This writer certainly feels nostalgic for that time… yes, last Wednesday was a good day.