- Kids like that there is a store just for them.
Kids would rather be promised a trip to Toys R Us than any other store.
Kids can run through the aisles at Toys R Us and find stuff they like but in any other store there won’t just be toys. Kids might not have a device to see online stores or it’s easier to browse in a real store than online.
Please don’t let Toys R Us close it will make kids very unhappy. From, Andrew [Redacted]
This isn’t the endThis is an inspiring letter for anyone who questions the future of brick and mortar retail, though it would be interesting to catch up with Andrew in 2029 or so and find out what he thinks about buying things online rather than in a store. Andrew had the same initial reaction that many adults did when hearing about the bankruptcy filing of Toys ‘R’ Us, and assumed that “bankruptcy” means “closing its doors forever.” That isn’t necessarily the case, but the letter serves as a nice break in a pile of bankruptcy documents that has already included an old advertising jingle. The retailer may close some stores, or combine Toys ‘R’ Us and Babies ‘R’ Us stores, but as far as we know, plans to stay in business. Also, don’t run in the aisles of a store, Andrew.
It’s all about ChristmasLast week, Bloomberg News reported that suppliers had cut back on shipments to Toys ‘R’ Us at the most important time of year. The chain is even more dependent than the rest of the retail industry on the holiday season because, for any precocious children reading this article, Santa shops there. The company didn’t do well during the 2016 holiday season. A repeat of that performance is a scary thought, since the chain normally takes in 40% of its earnings during the last 25% of the year. Toys ‘R’ Us is owned by two private equity firms and a real estate company, and it has $400 million in debt coming due in 2018. Filing for bankruptcy or finding another way to organize that debt would be a good way to show suppliers that everything is under control, and that they can keep on shipping toys through the holiday season and beyond.
Gift cards: Use ’em up nowThe reason why we urge readers to use their gift cards up when a retailer may file for bankruptcy soon is that a Chapter 11 filing often voids the company’s past gift cards. That’s bad when a chain shutters all of its stores and there aren’t any stores left where you can spend the cards, but it’s especially annoying for consumers when the store stays in business, yet you can’t use the card there since a new owner purchased the retailer out of bankruptcy. The first bankruptcy of RadioShack in 2015 changed how some retailers deal with gift cards after a Chapter 11 bankruptcy. The Attorney General of the company’s home state, Texas, was outraged that a company could reorganize and void millions of dollars’ worth of gift cards. He arranged a settlement where gift card holders would be paid first, before the company’s creditors, with the remaining balance of gift card funds going to the offices of states’ attorneys general. Since then, there’s been a trend to keep on accepting gift cards. Payless ShoeSource filed for Chapter 11 bankruptcy due to unmanageable debt, just like Toys ‘R’ Us, but still accepts pre-bankruptcy gift cards. While forcing a retailer to pay out millions of dollars in cash refunds to gift card holders is a pro-consumer move, it’s easier for a retailer to just keep accepting its old cards rather than risk being forced into a settlement like RadioShack’s.
Domestic violence. You’ve probably seen enough headlines and news articles about it to last you a lifetime. There are hundreds of books that have been written based on true stories, told by victims of domestic violence. You might even be experiencing it yourself. If so, please head straight to the bottom of this post. Right…