Goodbye Toys “R” Us

New trends in toys and children’s interest in electronics lead Toys “R” Us towards bankruptcy. We have evolved as a society and children have strayed away from traditional toys and it is hurting Toys “R” Us. Currently Toys “R” Us prices have lowered drastically and they are preparing for bankruptcy.

Whether it be for birthdays, Christmas, Easter, or just for fun, children have received toys for entertainment and joy. The shrieking sounds of a kid receiving a new toy are filled with pure happiness. Just a few short years ago, Barbies, Hot Wheels, Legos, doll houses and many other toys were the hot trend. Many are now worried that Toys “R” Us will become the new Blockbuster.

You may be curious as to why this is happening. Toys “R” Us only filed for chapter 11 bankruptcy, which puts the business close to $5 million in debt. Chapter 11 bankruptcy is a voluntary petition to help the franchise reorganize their business. The downside to chapter 11 bankruptcy is that it is costly. Chapter 13 is to help businesses make a plan on how to repay or come close to being out of debt, this can last from three to five years. Chapter 11 bankruptcy is more severe as it can damage the franchise.

The store is still currently open and will stay that way until anything new opens up in their bankruptcy. Kids are not playing with toys anymore because they have their own electronic devices. Instead of buying them new toys, parents are now buying tablets and downloading electronic games for their kids to play.  

There is no need for panic from rumors about the store closing; you can still buy the new and trending toys. Toys “R” Us is still the place to go as you are start thinking about your list of things to buy this upcoming holiday. Toys “R” Us is a part of many people’s childhood and they are doing everything they can to keep it that way for future generations.