Toys R Us Declared Bankruptcy
Toys “R” Us, filed for bankruptcy on Monday after a few vendors stopped shipping to them. Most vendors were concerned that the company would not pay them because of its financial distress. Luckily, those concerns were put to rest once Toys “R” Us secured bankruptcy financing on Tuesday.
Back in the 90s, Toys R Us was a place to go to when you wanted to buy toys AND video games. Keep in mind, this was before Gamestop took over the industry. Today, Toys R Us has a 1% market share of the retail gaming industry.
In 1999, Toys R Us was the #2 retailer for video games and software (according to Niko Partners research).
Today, most kids can be seen using iPads/tablets, and entertainment media in general, as early as a few months old. But does playing a video game brings the same joy as stacking 2 blocks? Most parents might say, "no."
Some people responded to the news on Twitter that they simply stopped shopping at Toys R Us because of the high prices and the negative experience of shopping at the store (messy, etc.). Others are heartbroken.
According to The American Pediatrics Association, screen time should be limited for children between 18-24 months. Instead, have an adult there to talk and play with the child instead to help further their development.
Toys R Us CEO David Brandon issued a statement that the bankruptcy protection period would allow the company to update the in-store shopping experience and pivot towards having more "interactive spaces" that can host birthday parties, product demos, and even let employees take toys out of the boxes to let the customers try something out before buying.
"We are confident that these are the right steps to ensure that the iconic Toys R Us and Babies R Us brands live on for many generations," said Brandon.
Toys R Us' 1,600 stores will remain open through the holiday season.