Before the announcement of liquidating all USA stores, Toys-R-Us CEO David Brandon mapped out a plan of closing all but the 200 best stores around the country, in an attempt to settle some of the crippling debt the company had undertaken. Interview requests with KB Toys were not returned.
Ellia Kassoff, founder of Strategic Marks and Leaf Brands, recently said on LinkedIn that his company has been working for the past six months to iron out a "sustainable model" for the toy seller, which liquidate about a decade ago after its second bankruptcy. Retail Group, and Party City Holdco Inc., which often open pop-up stores around the Halloween season and fill their stores with Halloween gear, toys and props.More news: What is the gender pay gap?
The pop-up stores will end after the holiday season unless they perform well and report high sales numbers. (MAT) and up to 200 smaller toy suppliers who are looking for new brick and mortar retailers. The Toys R Us going out of business sale comes as more and more people are buying toys and games online due to the convenience and affordable prices of doing so.
That's about how much in sales Toys R Us would leave on the table if it were to close all of its USA stores.
Kassoff hopes this move will reverse the fortune of all toy retailers. "Regarding the debt against the owned properties-$859 million-those creditors will be participants in the whole Toys bankruptcy case, with the caveat that their collateral is the owned real estate".