Thread regarding Toys "R" Us layoffs

Get out of Toys'R'Us now.

Toys'R'Us has over $500 million in debt that caused it to file bankruptcy in the first place. When they did that, they borrowed $3.1 billion from various banks to continue to fund day to day operations (keep stores open, payroll, benefits, etc.). They have another $400 million in debt due in 2021. That's nearly $4 billion in debt as of right now, and they're on the verge of breaching covenant with the $3.1 billion they borrowed from the banks (ie: they can't pay it back and they've almost tapped that fund dry).

That's why liquidation is not only probable, but at this point guaranteed. The information didn't "leak", it was strategically thrown out by Toys'R'Us in hopes that it would entice a buyer of the debt to come out of the woodwork to save the chain. Unfortunately, no buyer has emerged and thus come Monday Toys'R'Us will announce liquidation of all assets, including the sell-off of Toys'R'Us Asia to it's other shareholders (the Chinese brothers whose names I forget will pry buy it outright).

There's a chance it may announce at 5pm EST today. Once liquidation starts, your stores will have up to 45 days to sell off everything, including fixtures, before the store closes. Your store manager will be given incentives to sell as much as possible.

As a former KB Toys Store Manager I was enticed to sell as much as I could at the lower discounts to meet a threshold. Doing so got me a bonus from Gordon Brothers (a liquidator) of a couple thousand dollars.

Once you hit the 30% storewide mark, you will have days, not weeks, left. All non-essential employees will be let go, and all shipments will stop immediately. District, Regional, and Home Office personnel will bet let go the day liquidation is announced and the liquidators will take full control of the company operations.

This is a sad time but this is the truth. My heart breaks for all of you.

Originally posted by @S6TLLjv-ksf.

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Post ID: @OP+S90M31R

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It’s so sad that toys r us is facing this crisis!

Even though children now don’t play with conventional toys as much, where will they go to browse thousands of toys and make their wish list?

So sad for all the great employees

God bless you all

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Post ID: @2ehi+S90M31R

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