Roughly 20% of all Toys R Us locations are slated for closure as the retailer reorganizes it’s debit in bankruptcy proceedings. The child’s paradise is getting squeezed as consumers shift spending to internet purchases, as well as fierce competition from larger retailers like Amazon, Walmart, and Target.
Closures are planned all across the country – check out the full list here. There still is a chance some of these locations will remain open in the event they can negotiate better lease terms. The chain will also be combining some stores into shared Toys R Us and Babies R Us locations.
Going-out-of-business sales are expected to begin in February until mid-April when these stores will shutter for good.
Is it safe to hold Toys R Us gift cards? I personally wouldn’t worry much at this time; bankruptcy proceeding are fairly common as retailers restructure their debt. Still, I wouldn’t be surprised if they go out of business entirely within the next few decades.
Anyone thinking Nintendo Switch Consoles might be put on sale at these Toys R Us locations? How deep of a discount would be a good deal?
I doubt GOC gift cards will be part of these sales. Thoughts?
Yeah, can’t see them putting those on sale.
Looks like Oregon got spared. I got a GC that needs to be unloaded.
Dunno about that prediction, Toys R Us is actually not doing terrible business-wise, the vast majority of their stores are profitable.
The reason why they are in financial trouble is not due to poor business practices, its because they took out $3 billion in debt to buy out their shareholders. Basically, in 2005 the company went from a public company to a private company which required them to buy back every single Toys R Us share all at once.
The debt wasn’t what they could manage with their revenue, I believe they will come out the other side just fine, albeit smaller.
Agreed. You’re also being polite and blaming Toy R Us rather than Bain/KKR. Bain also eviscerated KB Toys a few years before.
Everyone also should remember Best Buy 5 years ago. Everyone was claiming that amazon show-rooming would bankrupt them – because ‘who would buy when you can order online’ — Now the stock is at all time high.
And if adults buy their toys in person than a 3yo will too.
TBH, I don’t know anyone who buys their stuff at Best Buy. The few times I went to look at MacBooks there, it was incredibly dirty and sticky.
OTOH, when going for my VGC last December, was totally surprised how packed it was — if they have even a fraction of such sales year round, they are definitely far away from closing anytime soon.
Bestbuy.com exists.
Sounds like you local Best Buy just needs to clean up. The stores around me are all clean.
All the brick and mortar stores shutting down have the same issues. Took private with borrowed money. Then owners borrowed more money and paid themselves hundreds of millions in dividends and then when the loans came due they can’t pay them. Everyone blames Amazon but they are a small player. Online sales are only 11 percent of total sales. Amazon has less than half of that. If someone is taking 4 percent of your sales and it causes your business to fail you aren’t very stable to begin with.
Toys R Us has terrible customer service. But they do have the best prices on diapers.
Don’t forget: TRU gift cards can also be used at Babies R Us. I don’t know what the resale value of diapers is, but there’s bound to be some value there.
Thoughts and Prayers go out to those who have their careers ended prematurely. Amazon will kill more jobs than Walmart ever did, yet where is the outrage. Boycott Amazon, shop small business when you can and always think sustainable.
Cheers,
Stephen Toast (LHR)
London, England
Quite a few small businesses are able to stay open because they can sell through Amazon in addition to local sales. It goes both ways.
haha. seriously? this kind of thought process never ceases to amaze me.
Kids now want cell phones and computers at a very early age, not toys!
Next few decades? I wouldn’t give them a few more years, let alone 10 or 20!
Agreed… 4 years max and they are gone.
Along with Sears, Sam’s Club (sic), and JCPenney
they said that 4-years ago about Sears….
I have over $500 in Gift Cards from TRUS. Any ideas what to buy and get it done?
Legos and Barbie dolls are always popular with the kids.
I think you may be able to buy 3rd party gift cards in store with a toys r us gift card.
I tried using a Toys R Us Gift card (through MPX) to buy Gift of College cards and it didn’t work. I don’t think 3rd party GCs will work, they said we cant use a GC for a GC. Hope someone has a DP that shows otherwise.
I’ve had the same experience as Shawn, below, using physical TRU gift cards. Registers are hard-coded to prevent this.
yes. this has been hard coded for a LONG ASS time. u can thank the eBay abuse for this.
so FYI to everyone that will keep asking the same damn question. its HARD CODED at the POS. now with bankruptcy, there is no way they can let people buy shit outside of their ecosystem. they need the money.
i have cashier friends who tried. it wont go through. time to find new friends. jk.
A couple of years ago, you could buy third party gift cards with TRU gift cards, but they don’t allow it any more.
Legos sets are always a good choice. If the discount is steep enough you can even make some money back reselling them on E-bay.
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