topic Re: Heads up Toys R US CC holders. They filed BK 11 in General Credit Topics

Heads up Toys R US CC holders. They filed BK 11

pizza1 — Wed, 20 Sep 2017 03:40:09 GMT

For those that have the store card and MC, I dont know what the future holds for you, but be on the lookout for correspondance possibly from the lender. Another big retailer feeling the effects from Amazon Me personally...I love to go shopping, and actually see the merchandise. Im not much of an online shopper anyways.

I tried to c&p the link, but my new computer isnt cooperating with me, or it could be user error which is more likely, LOL..

Re: Heads up Toys R US CC holders. They filed BK 11

Anonymous — Wed, 20 Sep 2017 03:45:03 GMT

You're right about the effects of Amazon but this is a Chapter 11 reorganization BK which is fairly common among businesses. I think it will be a while before card holders have to worry about anything. More likely your local store might close but I think the card will be good for quite awhile longer

Re: Heads up Toys R US CC holders. They filed BK 11

pizza1 — Wed, 20 Sep 2017 03:51:44 GMT

@Anonymous wrote:
You're right about the effects of Amazon but this is a Chapter 11 reorganization BK which is fairly common among businesses. I think it will be a while before card holders have to worry about anything. More likely your local store might close but I think the card will be good for quite awhile longer

Yep, reorganization. You're probably right about the cardholders, and being awhile before they may or may not hear anything regarding their cards. But, still something to keep in mind. Im sure we will see store closures as well.

Re: Heads up Toys R US CC holders. They filed BK 11

CreditMagic7 — Wed, 20 Sep 2017 18:45:34 GMT

I wonder if that means Babies"R"Us too

Re: Heads up Toys R US CC holders. They filed BK 11

Anonymous — Wed, 20 Sep 2017 19:36:40 GMT

Magic - It's quite possible the standalone Babies R Us stores may stay open, while the ones that are a duo of that and Toys R Us will close. There are very few national Baby stores and that is definitely a market.

But there are very few standalone Babies r us stores compared to Toys R Us

Re: Heads up Toys R US CC holders. They filed BK 11

Anonymous — Wed, 20 Sep 2017 19:59:10 GMT

@pizza1 wrote:
For those that have the store card and MC, I dont know what the future holds for you, but be on the lookout for correspondance possibly from the lender. Another big retailer feeling the effects from Amazon Me personally...I love to go shopping, and actually see the merchandise. Im not much of an online shopper anyways.

I tried to c&p the link, but my new computer isnt cooperating with me, or it could be user error which is more likely, LOL..

Really nothing to do with Amazon. All these retail organizations going bankrupt were taken private by big leveraged buyouts and then the owners further leveraged the companies paying themselves big dividends and now the companies can't pay back all the huge loans once they come due. Owners get rich and companies fail and bond holders left holding the bag.

Re: Heads up Toys R US CC holders. They filed BK 11

Anonymous — Wed, 20 Sep 2017 20:39:37 GMT

Frog pretty much nailed it. Does amazon have an impact on retail stores bottom line? IMO yeah of course. Is it enough that stores are closing as a result? Nope. Managed retail for years (target if anyone's curious) and can tell you basically every brick & mortar store is losing money until the holiday season at the end of the year, hence black Friday - the day stores ledgers come out of the red & into the black. Long after the rise of amazon every year you see normally desolate & abandoned stores being overrun with shoppers during the 4th quarter. My personal guess is stores lose maybe 3-5% of day to day spend too amazon, but many recoup this via online sales.

If you want to point a finger at a large faceless company running long standing stores out of business, turn thy eye towards Walmart lol.

Re: Heads up Toys R US CC holders. They filed BK 11

CreditCuriosity — Wed, 20 Sep 2017 22:29:55 GMT

No impact to card holders currently. They being Toy's R us have wanted to do restructuring for awhile now and this is their chance. Many companies go through Chap 11 and come out as better companies from it.

Re: Heads up Toys R US CC holders. They filed BK 11

Anonymous — Wed, 20 Sep 2017 23:18:41 GMT

@Anonymous wrote:

If you want to point a finger at a large faceless company running long standing stores out of business, turn thy eye towards Walmart lol.

While there is truth to this, Amazon is the new Walmart, and is going to actually surpass it. They are on a collision course towards each other. Retail is losing a ton of business to Amazon, and it only increases each year as the world becomes fully adpoted to buying everything online. Hell, even in the rare times I go shopping, I will quickly compare on my phone if something is cheaper via Amazon. Not to mention free shipping and 5% back.

Re: Heads up Toys R US CC holders. They filed BK 11

Anonymous — Wed, 20 Sep 2017 23:34:18 GMT

A lot of this is interesting discussion but has little to do with credit cards. So, moving to General Credit

Re: Heads up Toys R US CC holders. They filed BK 11

Anonymous — Wed, 20 Sep 2017 23:41:05 GMT

Interesting to see what will happen with the credit cards. Maybe they'll just close down some stores.

Re: Heads up Toys R US CC holders. They filed BK 11

Aahz — Thu, 21 Sep 2017 00:21:49 GMT

The New York Times Article - https://www.nytimes.com/2017/09/19/business/dealbook/toys-r-us-bankruptcy.html

Quotes relevant to issues brought up in this topic.

Cause is more debt than competition-

The company made the Chapter 11 bankruptcy filing late Monday night in federal court in Richmond, Va., acknowledging that it needed to revamp its long-term debt totaling more than $5 billion.

The retailer, which also owns Babies “R” Us, has struggled to compete with Amazon and stores like Walmart.

But the financial plight of Toys “R” Us was exacerbated by a heavy debt load that has weighed on the company for years. The private equity firms Kohlberg Kravis Roberts and Bain Capital, as well as the real estate firm Vornado Realty Trust, purchased the company in a leveraged buyout for about $6 billion in 2005.

All stores, including Babies R Us to remain open-

The company said its roughly 1,600 Toys “R” Us and Babies “R” Us stores around the world, including in Australia, Asia and North America, would continue to operate “as usual.”