When you think of toy stores, what do you think of? You will probably think of Toys”R”Us, one of the biggest toy companies in the U.S. Unfortunately, due to near bankruptcy Toys”R”Us is shutting down.
When Toys”R”Us shuts down you might not care because there are other places like Target and Walmart to buy toys. But unlike Toys” R”Us there are only a few aisles with toys. the string down at Toys”R”Us has affected many toy manufacturers like Mattel, Lego and Barbie. Toys”R”Us also gives chances to smaller, less successful toy companies.
In 2005, Toys”R”Us, KKR and co, and Vornado bought the toy chain in a $6.6 billion leverage layout. This left Toys”R”Us with 5.2 billion dollars of debt. The company had to pay interest payments of $400 million a year, which left Toys”R”Us on the verge of shutting down. That was the first blow. Later when online shopping companies like Amazon became popular Toys”R”Us was pushed into bankruptcy.
I believe that Toys”R”Us can be helpful for buying specific toys like toy trains or cars. But with Amazon and other online shopping stores I think we don’t really need Toys”R”Us anymore. Stores are usually more popular when they have more reasons to come like buying clothes or food. That is why stores like Target and Walmart do so good because of their variety of items. If Toys”R”Us could have given people another reason to come, they might had better luck. I personally enjoy the experience of being in a toy store just to look around and see toys of all kinds everywhere. I think it is sad for all the little kids out there who buy their toys from Toys”R”Us.