by Anika LeeVan
Toys R’ Us is making a comeback after closing all their stores in June 2018.
According to CBS News, about 800 stores closed down and around 30,000 people lost their jobs. Now Toys R’ Us lenders are trying to start up the Toys R’ Us brand once again.
Toys R’ Us is now trying to reorganize their brand into a new company that will invest in new retail operating businesses, but will still keep the current license agreements according to Fortune Magazine.
CBS News said that investors said “that could bring back these iconic brands in a new and re-imagined way.”
But why did Toys R’ Us close in the first place? In early 2018 they had around $5 billion in debt and went bankrupt. The company had no choice but to close down.
The company also couldn’t sell as much as Target, Walmart and Amazon.
As reported by CBS News, the company was going to auction off its intellectual property, but decided not to.
As stated in Fortune Magazine, a group that financed the Toys R’ Us company during the bankruptcy now have the rights to the name of the company and receive royalty payments.
Freshman Carli Tharp said, “I think it’s a fabulous idea [for Toys R’ Us to reopen]. It’s a great idea because that’s where you buy your toys,” but she also says, “They’ll probably go out of business again.” She believed they will run out of money again.
There have been many rumors about why the company closed. Freshman Olivia Witters said she heard the rumor that Toys R’ Us closed because kids don’t play with toys anymore.
Witters believed this rumor because “kids play on electronics more than toys.” She also thought that the company “closed down because online shopping became more popular.”
Witters thinks it is a good idea for them to reopen.
“Because I feel like there’s not a lot of toy stores around. As a kid (she) would want to go look at the toys instead of online shopping.” Witters said.
Toys R’ Us company is in a battle with lenders that are trying to take Toys R’ Us Asia operations. They fought over how much the stores in Asia should pay to use the Toys R’ Us name according to Fortune Magazine.
Both Witters and Tharp agree that Toys R’ Us could get more attention once they reopen because of how popular the closing was.
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