The holidays are right around the corner, but one of the country’s biggest toy shops isn’t feeling very jolly. Earlier this week Toys R’ Us which has more than 1,600 stores around the country filed for chapter eleven bankruptcy. The company is reportedly facing a $5 billion debt, and $400 million of that is due next year. And now with financial trouble swirling, suppliers are holding back on shipments unless they receive cash payment in advance of delivery. This could mean that the season’s hottest toys might not make it to store shelves, forcing customers to look elsewhere. In June chairman and chief executive Dave Brandon reported that the company had a slower than usual holiday season last year and that the trend was continuing into the start of 2017. He says overall weakness in the baby business, lower prices from their competitors and customers turning to online retailer Amazon all contributed to the company’s disappointing numbers. And while this might be bad news for Toys R’ Us, a going out of business sale might be on a lot of parent’s wish list.
About Brian
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.
