The “R” in Toys “R” Us stands for the company’s original name of “Toys usR”. In 1957, founder Charles Lazarus combined his personal philosophy, “service is our best toy,” with the idea of a kid-friendly shopping experience, to create the retail dynasty that became Toys “R” Us.
The name is a play on the phrase “toys are us,” with the “R” representing the first letter of the founder’s last name.
What was Toys R Us original name?
Toys “R” Us was originally founded in 1948 under the name “Children’s Supermart” by Charles Lazarus in Washington D. C. However, in 1957, Lazarus changed the name to “Toys “R” Us” to better reflect the name of their primary product.
Some of the changes that took place when the company rebranded to Toys “R” Us included the introduction of a mascot, Geoffrey the Giraffe, and the implementation of an easy-to-read red logo.
What happened with Toys R Us?
Toys R Us was a chain of toy and baby product retail stores that had been a long-time staple of shopping malls and shopping districts all across the United States, dating back to its founding in 1948.
In September 2017, it filed for bankruptcy due to a heavy debt load and increasing competition from other retailers such as Walmart and Amazon which sold similar products.
Having already closed down their U. S. and U. K. stores in 2018, Toys R Us finally liquidated in March 2019, marking the end of a beloved institution. Although the bankruptcy filing allowed the company to dodge more than a billion dollars in debt, more than 33,000 jobs were lost between the U. S.
and the U. K. stores.
The bankruptcy filing also brought the closure of its many subsidiaries, including Babies R Us, Geoffrey’s Toy Box, and Imaginarium. Furthermore, Toys R Us’s intellectual property and trademarks were sold to Stephen Kalai in a bankruptcy auction for $20 million.
The decline of Toys R Us is seen as a result of a lack of technological innovation and a failure to expand its product offerings. Toys R Us had become known for having a largely dated model, with limited digital presence and an apparently outdated approach to customer service.
Unfortunately, due to the timing of the bankruptcy filing, Toys R Us’ management was unable to capitalize on recent trends in the toy market such as subscription services, mobile applications, and augmented reality.
It is said that what really hurt Toys R Us was the overwhelming amount of debt on its balance sheet, which was largely attributed to a $6.6 billion leveraged buyout the company underwent a decade ago, in which it was taken private by three funds associated with Bain Capital, Vornado Realty Trust, and KKR.
This created major constraints on the company’s cash flows, eventually leading to its demise. While some of its accolades will be remembered as nostalgic memories, Toys R Us no longer has a physical presence in the retail space.
Will Toys R Us ever come back?
At this time, it is uncertain if Toys R Us will come back. However, it is possible that the company could make a comeback. In October 2019, the brand secured an additional $20 million from an investor that fueled speculation that a comeback of the beloved retailer could be on the horizon.
Since then, the company has made strides to remake the brand and create a new digital presence, which could eventually lead to the relaunching of stores. Unfortunately, the novel coronavirus (COVID-19) pandemic has added another level of difficulty to this effort.
While the upcoming holiday season could prove to be an opportune moment for the brand to make its grand return, only time will tell if this will come to fruition.
Is Toys R Us still out of business?
Yes, Toys R Us is still out of business. The company filed for bankruptcy in 2017 and was unable to reorganize. All of the Toys R Us and Babies R Us stores in the United States closed in June of 2018.
Some stores in other countries are still in business and are operated by franchisees. However, Toys R Us and Babies R Us no longer has its corporate-owned stores. The company lives on through its website and a selection of Toys R Us products can be found at retailers such as Walmart, Amazon, and Target.
Who owns Toys R Us Now?
In 2018, a consortium of investors, including Cantor Fitzgerald and Solus Alternative Asset Management LP, purchased Toys R Us through the company’s bankruptcy proceedings. The consortium is connected to a real estate investment trust called Tru Kids.
This organization owns the intellectual property and rights associated with Toys R Us, as well as its e-commerce platform. Tru Kids also has plans to open a series of stores in the United States and abroad.
The new stores will reportedly feature interactive experiences and activities, as well as Toys R Us’ signature toys and products. In addition, Tru Kids will also open a number of pop-up stores in Japan and Europe.
How much money was Toys R Us in debt?
Toys R Us filed for bankruptcy in September 2017, and the company was approximately $5 billion dollars in debt at the time of filing. According to publicly available documents, the company reportedly had $2.
2 billion in secured debt and $2.8 billion in unsecured debt. The secured debt was composed of a $1.3 billion term loan and a $919 million asset-based revolving credit facility in addition to smaller loans.
The unsecured debt included a $768 million term loan, $622 million in bonds, $2.1 billion in vendor non-trade payables, and $504 million in letters of credit.
Why did Kmart fail?
Kmart failed for a variety of reasons. First, the company failed to make the necessary investments in their stores to stay competitive in a rapidly shifting retail landscape. As other retailers began to focus on creating enjoyable shopping experiences, Kmart failed to make similar investments in areas such as store layout, customer service, product selection, and even their digital presence.
This made them less attractive to shoppers and hindered their ability to keep up with changing trends and customer needs.
Another reason for Kmart’s failure was an over-reliance on discounting and promotions. This strategy limited their ability to develop a brand image, hurt their ability to differentiate their products and undercut their margins.
In addition, the company was slow to evolve and adapt to the rise of online shopping. Kmart was late to the game in terms of investing in the technology and services associated with online retailing, such as developing robust e-commerce platforms, payment solutions, and customer service.
As a result, they did not have the same level of success as their competitors in the online space, which further contributed to their decline.
Overall, these factors combined to create an environment in which Kmart struggled to stay competitive and ultimately led to their failure.
Why is Toys R Us in Canada still open?
Toys R Us in Canada is still open because it is owned and operated by a group of investors led by Fairfax Financial Holdings, an investment firm based in Toronto. This group of investors purchased the remaining business assets of the Canadian division of Toys R Us in June 2018.
This allowed the nearly 70 stores across Canada to stay open and continue to employ about 2,000 staff. The Fairfax investors also worked with the Canadian government to help ensure the viability of Toys R Us.
As such, Toys R Us in Canada has been able to keep its doors open and continue to offer products and services to Canadians.
Is Toys R Us going to reopen in the UK?
At this time, it is unclear if Toys R Us will reopen in the UK. Toys R Us previously had a large presence in the UK, but the company declared bankruptcy in 2018 and closed all 735 of its locations there.
That same year, the company was acquired by British firm, The Foundation R. E. Ventures and a subsidiary of CarVal Investors. Following the acquisition, a new website for Toys R Us was launched in the UK, but it was primarily used for customer service and does not feature any products for sale.
Since then, there has been speculation that Toys R Us could be planning a comeback in the UK, but there has not been any official news. There were some hints that it could be coming, as the company was hiring a store manager in early 2020, but since then there has been no progress.
At this time, it looks like there are currently no plans to reopen Toys R Us locations in the UK, but it is still possible that the company could revive its business there in the future.
Is Toys R Us open in Australia?
No, Toys R Us is not currently open in Australia. The last Toys R Us store in Australia was shut down in 2017. Toys R Us was a US-based toy retailer and had been operating in Australia since the 1983.
However, due to the decline in stores in the US, the Australian outlets were closed in May 2017. Toys R Us had been a popular destination for parents and children seeking toys and games, but now customers have to look to other retailers to meet their needs.
Popular toy stores such as Big W, KMart, and Target are now the main source of toy shopping in Australia.