Massive Debt Sinks Major Toy Retailer, Who Will Benefit?

September 19, 2017
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Another retail store is set to close up shop as Toys ‘R’ Us is set to file for bankruptcy according to CBC News. The chain was one of the preeminent toy stores in the world.

Toys “R” Us, the big box toy retailer struggling with $5 billion in long-term debt, has filed for Chapter 11 bankruptcy protection in the U.S. ahead of the key holiday shopping season, saying it will continue its normal business operations.

Despite the fact that the company will keep its stores open, the future does not look too bright for them.  “The company has 1,600 Toys ‘R’ Us and Babies ‘R’ Us stores around the world.” (Mel Evans/Associated Press) Financial pressure from bankruptcy may force them to make some tough decisions right around the holiday season.

With Toys ‘R’ Us leaving the stage, who will fill the gap? Online retailers such as Amazon could easily swoop in an scoop up the clientele thanks to their recent growth and existing toy and games department. Other retailers such as Walmart could also benefit from their bankruptcy as holiday shoppers flock to their stores to meet their needs. What is certain is that with another major blow to the retail sector, investors should be looking for opportunities and ensuring that their money is safe.

Read more at cbc.ca and don’t forget to subscribe to our free email newsletter to stay up to date with financial news from around the world.

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