Toys R Us Continues to Struggle

Sadie Keljikian, Express Trade Capital

Toys ‘R’ Us may close at least 100 and as many as 200 locations in the wake of a 15% decrease from last year’s holiday sales to those recorded this year.

The former industry leader has had a difficult few years. After struggling under mounting debt, Toys R Us filed for Chapter 11 in September, claiming the retailer intended to restructure its debts and rebuild, but thus far, its troubles have only multiplied.

Mattel’s recent decline in the stock market has compounded the problem. Stocks of the Barbie and Fisher-Price manufacturer have seen a significant price decline in the last month and estimates negative earnings revisions for the current quarter as well as 2017 collectively. Toys R Us also suffered a technological error recently when a collection of promotional codes glitched, allowing customers to stack three separate codes and get a 60% discount on their order total.

Despite indications that Toys R Us may not last long, the business insists that all proceedings are in service of restructuring and rebuilding. Its bankruptcy status will simplify the process of closing the worst-performing Toys R Us locations. Only time will tell if the retailer will recover.

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