Last year, troubled toy and games retailer Toys R Us opted to close all of its stores in the United States. The announcement came not long after the retailer filed for bankruptcy, as it had been experiencing financial difficulties for several years. Despite all this, Toys R Us could be about to stage a comeback.
After the retailer filed for bankruptcy in the United States, the company was reborn as Tru Kids Brands, with Toys R Us' former lenders serving as the owner. Tru Kids Brands maintained control of 900 stores in Europe and Asia, and is adding 70 more stores in Asia in 2019.
Richard Barry, former Toys R Us executive and the CEO of Tru Kids Brands, also revealed that the company has "significant interest about how to bring the brand back to the US" including retail stores and an online store. Barry said that the company isn't ready to fully confirm what the Toys R Us comeback may look like, but the group is "working 24 hours a day, 7 days a week to bring it to life." This work includes talking to different companies including retailers and technology companies.
These comeback plans have seemingly been in the works for some time. The founding of Tru Kids Brands came after the Toys R Us brand auction was canceled and the owners chose to expand its presence internationally instead. The owners recognized the value of the Toys R Us brand, which, despite being buried in debt, was still a household name that resonated with families and millennials who grew up with the retailer.
The big question is whether the new Toys R Us will be able to avoid the same pitfalls as before. Part of the reason why Toys R Us had so much debt is because of how many outlets the retailer had (the initial closure of 200 stores was an effort to stem that).
The retailer was also unable to effectively compete with online retailers like Amazon, as well as console digital storefronts that make it easy to buy games. Cheaper prices and convenience meant that many people turned away from Toys R Us. The shift to digital gaming and e-commerce is part of the reason why GameStop, another physical retailer of video games and consoles, is having financial difficulties, too. Many will be watching Tru Kids Brands and Toys R Us closely.
Image source: Wikimedia Commons - Raysonho @ Open Grid Scheduler / Grid Engine
Source: CNN