Amazon.com Inc.is reportedly looking into the possibility of expanding its retail stronghold by buying up some stores from bankrupt Toys "R" Us Inc., according to a Bloomberg report. "Assuming that every single parent that would have purchased a toy from Toys "R" Us now decides their child isn't getting a toy this year because Toys "R" Us isn't there anymore, the worst-case scenario is that the toy industry will decline by 12%", said NPD toy industry analyst Juli Lennett in a company statement. Efforts to merge up to 200 top-performing US stores with its Canadian operations are also underway.
Toys R Us will be closing or selling all of its USA stores after filing a motion to liquidate its U.S. business on March 15.
"We are grateful for the hard work of Toys R Us staff during this very difficult period".More news: How much cash are these March Madness upsets worth?
Strategic Marks bought the KB Toys brand from Bain Capital in 2016. Before the announcement of liquidating all USA stores, Toys-R-Us CEO David Brandon mapped out a plan of closing all but the 200 best stores around the country, in an attempt to settle some of the crippling debt the company had undertaken. The company is trying to salvage 200 of its top-performing locations, as part of a deal to sell off its Canadian unit in bankruptcy, but there is no guarantee a deal will come. The company filed for Chapter 11 bankruptcy protection in September. Its downfall had been blamed on a heavy debt load and relentless trends that undercut its business model, from online shopping to mobile games.
Published reports say liquidation sales around the country will start as soon as Thursday, and will continue until all the merchandise is sold. For those anxious about any gift cards they have for Toys-R-Us, the company will honor them a remaining 30 days or so.
"If you have a gift card, use the gift card now", Fleming said.