Listen Now: Toys ‘R’ Us Closing
Toys ‘R’ Us might be closing its doors but that doesn’t mean it’s closed for business.
Unless it is suddenly bailed out by a last minute buyer, it looks like the well-known children’s toy store is shutting down the last of its stores. But the brand’s name, it’s mascot and it’s jingle will be sticking around for the next generation.
According to retail bankruptcy attorneys, buyers often swoop in on a company going out of business and snap up everything attributed to its name. This helps the bankrupt company pay off some of its creditors and the new owner can take the name and rebrand it. In most cases when this happens the new buyer closes down the brick and mortar stores and takes the business online to a new customer base.
However in the case of Toys ‘R’ Us, the name is so well known that the new buyer might acquire a few locations to act as showrooms. This will give the new buyer credibility with customers online and the original fanbase that isn’t ready to say goodbye to the toy store.
CBS News Radio national business journalist Brian Banmiller has spent more than 40 years in the news industry, covering business, politics and the economy on television, radio and in print. Currently, his “Banmiller on Business” reports are delivered to an audience of millions nationwide.
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