The Reopening of Toys R Us

The+Reopening+of+Toys+R+Us

On June 21, 2019, Toys R Us announced their reopening after going bankrupt on September 17, 2017. The reason for their bankruptcy was they were deep in debt, and it would be hard for stores across the country to stay open. The company thought that closing stores would help them be able to dig their way out of their debt and improve on making the stores better. The store had officially closed on June 29, 2018.

A local Toys R Us having an everything must go on sale before closing.

Many people were upset over the store closing, but the workers were even more devastated when they slowly started losing their jobs. When the stores closed, over 31,000 people lost jobs. Once the announcement of the business going bankrupt was made, the stores began having a liquidation sale. Many say that Toys R Us failed to adapt over time, and that was the reason the store went bankrupt. 

“It’s sad that Toys R Us had to close because they weren’t able to identify market changes,” said Dr. Bartlett. 

Since the store opening in 1995, children over the years have changed and so have their interests. With the addition of television and the internet, kids now can get their entertainment instantly with a click of a button. The market is changing, and if Toys R Us does not start to change, they may run into a similar (if not the same) problem that caused them to close in the first place. 

The company is going to open two new stores, with one being in New Jersey. In 2020, they plan to open up more stores, but they will be smaller than the old Toys R Us buildings.