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Toys R Us joins in, leaving nostalgia, anger and a chance for revival



Investigations continue into the death of the retailer. Among them, the Minnesota State Board of Investment is suspending its investment in KKR until it understands KKR's role in the retailer's demise, according to media reports.

Some have refused to accept the end as final. Toys R Us former CEO, Gerald Storch, is trying to put together a plan to revitalize the business and help employees save their jobs, sources familiar with the situation tell CNBC. The New York Post first reported on the effort.

However, the odds of success are small. It would take a lot of capital to buy stores, distribution centers and rebuild or rebuild a Toys R Us website. Then there is the simple fact that starting a business starts as a loss-making business.

In order to have products in Toys R Us stores, Storch and its investors would have to convince toy companies like Mattel and Hasbro to ship their toys back to the revived company. They would also have to do it quickly: dealers and toy manufacturers are already preparing for the Christmas season. Some buyers have used the fire sale prices on Toys R Us liquidation sales to prepare for December, which is likely to freeze into these later sales.

Each of these talents needs a rip off from a number of parties that were recently burned by the Toys R Us bankruptcy and liquidation ̵

1; toy companies, landlords and investors. Once bitten (hard), twice timid

For these reasons, most other attempts to accomplish similar services have failed. When the sports authority was liquidated two years ago, the sporting goods manufacturers Sporting Goods and Sports Direct wanted to make a similar offer from rivals to save the company. According to a source familiar with the situation, these plans have cost the retailer around $ 1 million per store. They fell apart.

But even if Storch is not successful, the name Toys R Us can live on. It sells its intellectual property, the results of which will be announced in early August. With this intellectual property, a buyer can adopt and revive the Toys R Us name and logo. This will not stop Toys R Us from liquidating, and it will not give employees their jobs, but it could ensure that the next generation of children have the experience of shopping at Toys R Us.

That would be a step with far more precedent. After Twinkies owner Hostess Brands announced that it was liquidated in 2012, there was a wave of nostalgia for the creamy baked goods that accompanied the lunch boxes for a generation. Shelves of convenience stores were emptied and the pastries began to appear on Ebay. Investor Apollo Global Management and Metropoulos & Company bought the Twinkie brand along with a few others that belonged to Hostess and resurrected it. Since then they have brought the new company to the public through a reverse IPO.

Retailers or others who buy Toys R Us IP have a number of options. For example, if Target buys the brand, Target can open a store-in-store concept as it expands its toy business. Another investor or retailer could also create pop-up shops that appear only for the Christmas season, a logical step, since Toys R Us makes the largest part of its sales anyway.

Even Amazon could buy the Toys R Us website. the nostalgia that the brand evokes, and the brand with an infamously rickyy website, the internet platform she always needed.


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