With the promise of new ginormous stores featuring play areas, Toys “R” us is coming out of hibernation with children worldwide in rejoice.
According to Bloomberg, the toy tycoons at Toys “R” Us and Babies “R” Us were producing roughly $7 billion in sales annually in America, with over 700 outlets. Their departure left a massive gap in the toy market where Walmart, Amazon and Target seized the opportunity to swoop in and thrive.
Critics suggested that most toy manufacturers would be reluctant to get back into business with the revamped Toys “R” Us brand after several of them lost profits when the company announced its liquidation in 2018, after filing for bankruptcy a few months prior to liquidation. When Toys “R” Us filed for bankruptcy, Solus Alternative Asset Management (primary lenders to the company) seized the toy company’s assets yet none of their measures improved sales operations. Units worldwide were shut down with new purchasers for their Asian and Canadian stores. Lenders then formed the “Tru Kids” company as an alternative to bring the brand back to life in American and its other global locations. “Tru Kids” has since hired several new employees and signed a deal to bring Toys “R” Us and Babies “R” Us back through a partners.
In spite of the backlash, as Bloomberg reports, MGA Entertainment (the highest-selling toy providers in the world) is prepared to give Toys “R” Us another opportunity to shine.