Toys 'R' Us 'open for business' in PH despite U.S. bankruptcy

Toys 'R' Us 'open for business' in PH despite U.S. bankruptcy

Once Toys "R" Us does emerge, Mattel and Hasbro will have to keep helping revamp its stores and offering flexibility to compete with Amazon and Wal-Mart on price.

Toys R Us did not announce any store closures - "in fact, we will be announcing our seasonal hiring push and expect to hire thousands of employees in the coming months", spokeswoman Jessica Offerjost said in an email Tuesday.

Customers can "continue to shop in our stores and online" as the Christmas season nears, Toys "R" Us Philippines said on its Facebook page, adding it was not part of debt restructuring in the US and Canada.

Toys R Us ended its almost 70-year run yesterday when the toy retailer filed for Chapter 11 bankruptcy, which came as no surprise to the industry as the company has been operating under "significant leverage" since 2007, noted by CEO David Brandon in his statement.

The company is said to have received financial commitments that will ensure the continuation of normal operations during the proceedings.

"Plath said that while Toys R Us should be able to weather the upcoming holiday shopping season, he's not optimistic it will be able to make the adjustments necessary to survive long term".

Li Jiewei, a spokesman with the China Toy and Juvenile Products Association, thinks demand for toys remains robust, regardless of the problems at Toys "R" Us.

Toys "R" Us had been hobbled by more than $5 billion in debt, which required over $400 million a year to service.

It also confirmed its stores outside of North America - including the United Kingdom and Europe, Australia, as well as around 255 licensed stores and a joint venture in Asia - were not affected by the so-called Chapter 11 filing. Toys R Us had, to this day, one of my favorite ways to buy video games; the video game ticket wall.

Various lenders including JPMorgan have already committed as much as $3bn already to financing the attempted company turn around.

The North American filing by Toys "R" Us Inc is the latest sign of trouble in the retail industry disrupted by online shopping and discount chains.

With the possible business restructuring in mind, the bankruptcy filing may have placed at around 64,000 positions in the company at risk of job cuts, Daily Express reported. The result is that many former Toys "R" Us kids have no interest in being Toys "R" Us parents. Sales of fidget spinners, a toy that has become ubiquitous in the past year, got twirling online first. After all, just because a classic brick-and-mortar institution is falling on hard times doesn't mean kids will stop wanting some of the world's most popular toys. Back then, KKR, Bain Capital, and Vornado Realty Trust acquired the toy retailer in a $7.5 billion leveraged buyout, and now find their investment wiped out. Amazon and Toys "R" Us settled the case in 2009.

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