If you grew up with Geoffrey the Giraffe and the dream of being a Toys R Us Kid forever, it is now time to put your childhood fantasy to bed. Or, more accurately: close down your nostalgic dream. After an unsuccessful Chapter 11 bankruptcy, the retailer is closing its doors for good.
Toys R Us to Close its Doors
The 60-year-old famous retailer is more than 8 billion dollars in debt and will be closing or selling all of its U.S. stores.
The company filed for bankruptcy six months ago and had been struggling to stay afloat. They took drastic measures including closing international stores, halting the buying of new toys, and warning employees of future, impending struggles.
The company even implemented an augmented reality experience last October to bolster in-store visitors. Unfortunately, it seems as though those efforts were too little too late.
Why Did They File Bankruptcy?
Toys R Us has been unable to contend with online competitors such as Amazon, and big box stores such as Walmart and Target. However, this seems to be one of the larger, and more heartbreaking, casualties of shifting consumer trends.
If the nearly 1,000 US stores close, 33,000 jobs will be lost.
A Trend Emerges
This marks an ongoing trend of old-school retailers being unable to keep up with the ever-changing 21st-century market, which is heavily driven by interactions in the virtual world, as well as consumers’ desires for the lowest prices.
Last year some notable companies including Gymboree, Payless, BCBG filed for bankruptcy. Additionally, stores like Macy’s and Sears were forced to close hundreds of stores for similar reasons.