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Toys ‘R’ Us Plans Bankruptcy Filing Amid Debt Struggle

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Re: Toys ‘R’ Us Plans Bankruptcy Filing Amid Debt Struggle

#31

Of all the things in the world, children's toys are THE most amenable to replacement by makers, tinkerers, and other people who want to do something in the real world. (Alas, that's not what's happened. People just buy the cheap plastic crap from Amazon.)

Doesn't Toys 'R' Us sell the same "cheap plastic crap" as Amazon?

Re: Toys ‘R’ Us Plans Bankruptcy Filing Amid Debt Struggle

#32
post #17

I have come to the conclusion that it is very hard for a specialty businesses to survive in the era of Walmart and Amazon - which does not bode well long term for places like Barnes & Noble and Gamestop. I hope I am wrong.

At least for Gamestop, you're probably not wrong. Amazon Prime gets you new video games at 20% off MSRP. That's cheaper than what the distributor sells them for.

Re: Toys ‘R’ Us Plans Bankruptcy Filing Amid Debt Struggle

#33
post #7

It really is unfortunate that stores I grew up with as a kid, ones like KB Toys, Montgomery Wards, Service Merchandise, Blockbuster, Kmart/Sears, and now even Toys"R"Us have gone by the wayside for one reason or another. It both depresses me and blows my mind that future generations may not even be able to experience Brick and Mortar.

Those toy stores were worthless palaces of consumerist made-in-china crap. I'm happy to see them go.

Where did you buy your Star Wars action figures? Your Lego sets? Or did you not play with toys as a kid?

Re: Toys ‘R’ Us Plans Bankruptcy Filing Amid Debt Struggle

#34
post #17

I have come to the conclusion that it is very hard for a specialty businesses to survive in the era of Walmart and Amazon - which does not bode well long term for places like Barnes & Noble and Gamestop. I hope I am wrong.

I still go to B&N because I like to drink coffee and read magazines. I don't pay for the magazines, but I still spend like $10 on coffee and such.

Gamestop has no hope for a continued existence with their current business model. Frankly, I'm surprised they are still around.

Re: Toys ‘R’ Us Plans Bankruptcy Filing Amid Debt Struggle

#35
post #10
post #7

It really is unfortunate that stores I grew up with as a kid, ones like KB Toys, Montgomery Wards, Service Merchandise, Blockbuster, Kmart/Sears, and now even Toys"R"Us have gone by the wayside for one reason or another. It both depresses me and blows my mind that future generations may not even be able to experience Brick and Mortar.

Do we really want our kids to enjoy fluorescent-lit warehouses full of cheap crap that will be thrown away a couple months after it's bought?

Haha sounds like your kids will be spending most of their time at their friends house with the "cool" parents

They will only appreciate your dedication to environmentalism when theyre older

Re: Toys ‘R’ Us Plans Bankruptcy Filing Amid Debt Struggle

#37
post #10
post #7

It really is unfortunate that stores I grew up with as a kid, ones like KB Toys, Montgomery Wards, Service Merchandise, Blockbuster, Kmart/Sears, and now even Toys"R"Us have gone by the wayside for one reason or another. It both depresses me and blows my mind that future generations may not even be able to experience Brick and Mortar.

Do we really want our kids to enjoy fluorescent-lit warehouses full of cheap crap that will be thrown away a couple months after it's bought?

The web is great when you know exactly what you want to buy. Brick and mortar is great when you’re still deciding.

Web is very very far from solving the browsing problem. Sometimes I know I want but have no idea what exactly I want. So you go to the store to look around.

Sometimes I also like to ask the sales associate, “I have so and so nephew, what should I get for them?”. Web still sucks at solving the librarian/curator/advicegiver problem.

Re: Toys ‘R’ Us Plans Bankruptcy Filing Amid Debt Struggle

#39
Though this may have something to do with Amazon (and retail generally trending online), it does appear that the big culprit here were Bain Capital (and its partners) who took it private in 2005 via leverage buyout and ladened Toys r Us balance sheet with untenable debt from thereon. Apparently, they were paying $500M in interests alone per year vs. reinvesting capital in growth of their offline stores or online retail.

I personally feel that, similar to bookstores which as seen a resurgence in neighborhood mom & pop stores, while Amazon will continue to dominate, a lot of smaller toy retailers (both online and offline) will spring up to take Toys r Us' space.

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