Toys ‘R’ Us potentially ending their long-standing business operations will add 33,000 brand new jobless to the unemployed, jobless contingent in the United States, contradicting efforts by the Trump Administration to lower that mark.
The toy superstore that became a dream factory for kids nationwide said in a U.S. Bankruptcy Court filing Thursday that it must liquidate, a move that would close 735 stores, leaving 33,000 people without jobs and wrap up a 70-year run for a once-beloved holiday shopping spot.
The chain, whose chipper mascot Geoffrey the giraffe beckoned families to stores, said poor holiday sales caused its final demise. Online sales had undercut the popularity of its stores, and rampant discounting from the likes of Walmart and Target shaved away profits.
Up until now, the President has managed to bring back or add a couple of million jobs for the circa 50 million jobless he inherited from previous administrations. Despite the President seemingly reconsidering the DACAs fate, contrary to his campaign promise, this news will continue for sure to upset his aspirations to please his constituents.
Toys ‘R’ Us has been a landmark feature in the lives of millions of American babies and children and their families, for over seven decades.
That is why, after 70 years providing its platform to toy makers ranging from Barbie maker Mattel, Hasbro and to others as the Lego ® educational toys from Denmark, seeing the favorite stores close will undoubtedly send the chills through many, oldtimers included.
If as reportedly planned, the chain store closes all his 753 stores throughout the American territory, it will mark this generation for their entire lives.
“This is a profoundly sad day for us as well as the millions of kids and families who we have served for the past 70 years,” Chief Executive Officer Dave Brandon said.
The scope of these events has impacted how shares of Mattel and Hasbro tumbled last week on those’ liquidation reports. Both companies have relied on the chain store for roughly 10 percent of their revenues, according to their 2016 annual reports.
This situation is a result of massive online sales by gigantic Amazon.com and a few others, against which competitors are powerless and are ruthlessly and slowly pushed out of business.
In the UK
Today, news reports that all Toys ‘R’ Us in the United Kingdom are closing their doors after failed efforts to find a buyer for the hundred stores in the UK.
In last days, 25 stores have either closed or are in the process of closing, finally leaving 3,000 unemployed reflecting the pitiful situation in the retail sector.
Administrators Moorfields Advisory appointed last month to start winding down the UK’s biggest toy retailer after it struggled to pay a £15m tax bill.
Simon Thomas, joint administrator, said Moorfields’ had negotiated with 120 different parties, most of them interested in buying up stock, and half a dozen looking at the whole business. But in the end, Mr. Thomas said the company had merely proved too hard to sell.
He told the BBC: “Any potential purchaser would have difficulty in sorting things out, for instance getting the rights to use the name, which is held by the American parent.
“Also, there are many services provided by the group by different subsidiaries, so if you take over one part, you have to make alternative arrangements or negotiate new terms. Put all that together and becomes very complicated.”
Mr. Thomas said remaining stock would be discounted further and “it should be an opportunity for people to buy some nice toys at a good price.”
The truth is that the chain store demise represents a significant shake-up in the education of American children. It is the surrender of old-fashioned toys which were mostly educational to make room for violent and addictive video games.
But why are toys so important?
Toys are the fun way to teach children and also the fun way to amuse them just for the sake of it.
When a child learns to have fun, he or she learns sooner and keeps it stored in his/her mind almost forever.
In the 90s, Toys ‘R’ Us provided wooden toys, plastic toys, building toys, puzzles, and so many others, instead, at this beginning of the XXIst century, globalism is taking over also in this area.
Indeed, globalization is controlling our lives, this time with the broad distribution of virtual games, absorbing the minds of the young, in exchange, the traditional approach to toys and games are being replaced one after the other.
Our children’s minds needed the everyday old-fashioned toys. That is why the surrender of Toys ‘R’ us is meaningful and marks the end of a whole era.