The Impact On Holiday Sales
Toys’R’Us filed for bankruptcy in September, with a whopping $5 billion due to creditors. It may take a Christmas miracle to bring the once toy giant back to life.
Of course, the latest blow to the largest toy retail chain has weakened Hasboro Inc.’s forecast for holiday sales. The chain can thank giants like Amazon for the move away from brick-and-mortar retailing. The filing for bankruptcy left Toys’R’Us exposed to $60 million in unsecured claims for payment.
Competition is now stiffer than ever, with behemoths like Walmart and Amazon, and Toys’R’Us isn’t the only retailer feeling the devastation. Payless Shoesource and Gymboree also filed for bankruptcy this year. Other retailers have close thousands of stores and laid off tens of thousand of workers as they try to cut costs and compete with e-commerce, according to the New York Times.