The renowned U.S retailer, Toys R Us, has kick-started plans to draft a court motion for its plan for liquidation. This was reported to CNBC on Tuesday by a source who is familiar with the situation.
There is a possibility of the retailer to make the motion official if they file soon enough. It would then start ending the iconic toy retailer, after spending over half a century in business.
A liquidation will probably lead to closing up all 800 stores owned by Toys R Us in the United States. It will be a major setback for the toy industry which has depended on this company for the supply of toys as well as great prices. Toys R Us was responsible for around 20 percent of toy sales in the U.S last year. This was stated by Stephanie Wissink a Jefferies analyst.
Toymakers will have to depend on Amazon if Toys R Us is no longer available to sell its product. This would result in battling for shelf space which is already limited in big-box stores. As such, Wissink has estimated as high as 15percent loss of Toys R Us toys sales.
Toymaker Mattel has had a drop of 8 percent in its shares ever since CNBC reported that the retailer was considering filing for bankruptcy in September, while their major competitor has lost around 4.6 percent.
Toys R Us went into bankruptcy with over $4million in debt in September. This was a sign from its acquisition in 2005 by some firms which was worth a whopping $6.6 billion.
Toys R Us sold to these buyers die to pressure because Target and Walmart among others made a drastic reduction in their prices. The debt they attained from the buyout only made their problems worse. Retail soon changed drastically as a result of the quick growth of Amazon and Toys R Us saw itself enclosed by payments and was unable to attain the required investment to keep going.
It has believed that bankruptcy security would finally provide it with the changes it required to stay in the competition, like extra experimental stores and a much stronger business, but as at then, it was already too late. The holiday season which is very vital to the retailer was very terrible, and it was unable to attain its financial targets.
In the weeks which came after the holiday, the pressure kept mounting. Its little cash balance left it at the possibility of breaching its bankruptcy loan terms according to what was previously told to CNBC by sources. Another fraction of its lenders, according to CNBC sources had already been pushing seriously for liquidation.
It became quite clear last week that the possible route would be liquidation. Regardless, just last week, as stated by sources, the company was still aiding its vendors in placing orders and informing employees that business was same as usual.
Toys R Us准备计划清算其业务
Toys R Us，作为一家标志性的美国零售商，正在起草其清算计划，知情人士周二告诉CNBC。
清算将很有可能导致Toys R Us的所有800家在美国的零售商店被迫关闭。这将对玩具行业造成重大打击，Toys R Us一直以来是玩具销售行业的巨头。
Jefferies Analyst的Stephanie Wissink表示，Toys R Us去年占美国玩具销售市场份额的15％至20％。
如果Toys R Us公司不复存在，玩具制造商则将需要依靠亚马逊来销售玩具，并在大商场中争夺有限的货架空间。
Toys R Us在9月份以49亿美元的债务破产。由于亚马逊等在线零售商迅速崛起，零售业发生了巨大变化，Toys R Us发现自己资金短缺，无法进行必要的投资以保持继续运营。
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