Toys 'R' Us preparing to close all United States stores

Marie Harrington
March 11, 2018

The deal left Toys "R" Us with a $5.2 billion albatross of debt around its neck.

Toys "R" Us will close all its stores in the United States after a worse than expected holiday season and the collapse of a restructuring plan, the Wall Street Journal is reporting. With such seismic changes underway, the effect on the overall economy is hard to gauge, but some form of economic pain is sure to be felt - some predictable and some not, and not just on employees whose jobs are gone, but on customers in the general buying sector as well.

"It's not the same", says one mother. "You can afford to play on the internet, which in and of itself is more expensive, believe it or not, than operating stores, in terms of delivering the bottom line".

A representative for Wayne, N.J. -based Toys "R" Us declined to comment. When they walk in with their kids, the experience is more like a child's playground.

Toys R Us is already in bankruptcy.

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While children will lose a jungle gym playscape, parents say they'll lose the place they make precious memories. "Even retailers that we report are doing well, their margins are down year over year over year". Nearly every weekend we would spend hours out here.

The items that did do well, such as MGA Entertainment's L.O.L. Surprise, got their start at Toys "R" Us - another sign of the chain's hard-to-replace role. Hasbro and Mattel, the two largest companies in the sector, saw their stocks plunge by 3.5% and 7%, respectively. The toy chain accounts of 10 percent of sales for both toy companies.

In a truly troubling sign that the industry could be in trouble, LEGO also reported their first sales drop in over thirteen years this week. And don't forget about the rise of mobile and tablet games.

Krystina McNamara looks forward to driving over an hour into Grand Rapids, to bring her daughter to Toys R Us.

Other reports by TheSundaySentinel

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