It’s a sad, sad day friends. Remember the utter joy you felt as you skipped down the aisle of Toys R Us, picked out your new favourite toy, and begged mumsy to buy it? While that was only last week for some of us, for most, it’s now a distant memory.
Unfortunately, it looks like the beloved toy distributor is going to be forced to file for bankruptcy, in a bid to buy some time and pay off the inordinate amount of debt they’ve managed to accumulate.
Apparently, the company has really struggled to stay in the green ever since a leveraged buyout over 10 years ago left the company with hella debt that it hasn’t been able to recover from.
The migration to online ordering, especially for large items and holiday spending, has done nothing to ease the stress on the company, which collects a lot of it’s revenue over the Christmas period.
It’s believed that the company has amassed debts of over $5 billion dollars, which is a looooot of Bioncles gift boxes.
Sources close to the company believe it will look to file for bankruptcy as soon as this week, allowing them time to restructure and sort out the $400 million worth of debt that’s repayable next year.
That’s not the only bad news, some suppliers are threatening to withhold stock unless Toys R Us can pay cash on delivery, meaning the company could be in for a very tough holiday period.
No word on how this might affect Australian stores, stay tuned for more details.
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