Toys ‘R’ Us is Going Out of Business and Amazon May Be the Reason Why

Because Amazon has gained such popularity and increase in sales lately, the stores we used to buy from, such as Toys ‘R’ Us started to go bankrupt.

Nowadays, people are more likely to order their items online rather than go to the store; this could be due to the online offers, commodity and price. Since the announcement in March that Toys ‘R’ Us is going to liquidate its US assets, fans of the store have been dreading the closure.

The company failed to find a buyer or restructure its debt and shut down its web operations three months ago.

The retailer has been on the market for 70 years and its decline is believed to be a casualty of the Amazon era. Toys ‘R’ Us entered bankruptcy in September and got a $3.1 billion loan to help revive the business. Unfortunately, the influx of capital was not enough to overcome the increasingly competitive market.

At the same time, even though the bankruptcy led to the closing of all US stores, it also had spillover effects abroad; the UK arm of Toys ‘R’ Us gave itself to a court administrator, while the Australian arm announced it would shut all stores as well.

However, things are not really that bad; in April, the company received bids in excess of $1 billion for its Asia unit. With this in mind, toy sales are expected to grow five times faster in Asia compared to North America over the following three years.

Source: travelandleisure.com