Toy industry could receive a big change, as the famous Toys ‘R’ US possibly going out of business as soon as possible. Leaving $11 billion in toy sales up for grabs but another store could benefit from this. Walmart, Amazon, Kohl’s, JCPenney, Party City, Target have expanded their toy department amid the Toys ‘R’ US closing.
Even Party City recently hired a top Vice President from Toys ‘R’ US. Toys ‘R’ US closure could open a door for newcomers like an international chain or small businesses in the toy industry. Amazon really takes over a category such as Books, user see the smaller sellers come in after they wipe out some of the bigger names. And if this is going to be done then liquidation will happen with Toys ‘R’ US.
Form consumer perspective, they look at these liquidation sales with the bait of skepticism because early on liquidation sales, they tend to not be the very best deals. The best deals tend to be at Toys ‘R’ US or whatever retailers are going out of business in the week prior to the liquidation sale and at the very end of the liquidation sale when things really on sale 60 to 70% off.
A partner in the bankruptcy practice Richards Kibbe & Orbe LLP, Gregory Plotko said, “While a Chapter 11 bankruptcy provides a company with breathing space, it is incumbent on the debtors’ management to show how it intends to reorganize as a going concern”.