Toy Retailer Toys R Us has seen a steady decrease in its sales throughout these past few years, and partnered with the problems the retailer has faced in paying back the taxes they owe, it was only a matter of time before the they hit rock bottom. It seems that time is now.

Toys R Us faces liquidation

In business terms, liquidation is when a company begins to shift the last of its merchandise in the form of flash sales and discounted prices in an attempt to pay back its remaining debts. It is a drastic move, and is often the last resort for a failed or doomed company.

Earlier in 2018, news emerged that Toys R Us was facing huge problems as it seemed that the company would not be able to pay back its massive debt. As the months carried on, faith in the company almost diminished completely with their revenue dropping massively. The negative image they were receiving meant that consumers and investors quickly jumped ship and began looking elsewhere for their toy merchandise.

Ironically, now that Toys R Us have began their liquidation sales, they have seen a massive increase in consumer interest and business, but the revenue they are making from them is just a fraction of what it could have been. Sadly, the money being made in this liquidation sale will not be going on towards bettering the company, but instead towards ensuring the taxes are completely paid for.

Toys R Us begins flash sales of stock

Now is as great time to find your nearest Toys R Us store and make the most of the sales they have going on. It is safe to assume their largest and most impressive stock of toys is already gone, as children and adults alike have spotted the opportunity of a lifetime and snatched them up.

We can possibly expect to see these liquidation sales continue for a month or two more, as it has also been reported that some stores have not received new inventory in weeks. If this is the case, then Toys R Us stores will not have new merchandise to sell, meaning they only have a limited and diminishing amount of stock per store.

The effects of the closures

When we look at this event from a business perspective, we can see a massive decrease in the selling of toys globally. This is due to the fact that Toys R Us was one of the largest toy retailers in the world. When they have completely shifted their stock, we will be missing an integral component in the business-to-consumer marketplace. However, not only will the company affect the business world, but also the lives of the employees that are currently hired there.

The closures of the stores have been estimated to see 31,000 people lose their jobs. This is just in the western world however, as Asian Toys R Us stores will continue to operate as normal. This is likely due to the low cost of production and transportation in the Eastern region, combined with the high demand for merchandise that Toys R Us currently has.
© ALL RIGHTS RESERVED