If you’ve clicked in to this article because of the headline, don’t worry. It’s real.
I thought I’d assure you about this because no matter which angle you look at it, it seems unbelievable.
But this isn’t click bait. It’s really happening.
Every Singapore 90s kids’ version of Disneyland + Heaven might really be going down.
You can start crying now.
Here’s what is going on right now.
Warning: It can get pretty dry from here on. You have been warned.
Toy ‘R’ Us Announced They Are Now Exploring Different Financial Options
On 7 Sep, news media outlets reported that Toys R Us has hired a law firm, Kirkland & Elis LLP.
The reason? To weigh restructuring decisions because the business is going through a downturn. That’s chim words for having a financial crisis.
Toys ‘R’ Us Sales Dropping, Faces Competitors From E-Commerce & Discount Chains
In June 2017, Toy ‘R’ Us reported a fiscal loss of US$164 million for the first quarter of the fiscal year in 2017.
That was a drop of 4.1 percent in the same-stores sale.
Their main competitors are e-commerce giants like Amazon who are able to give deep discounts and discount chains like Walmart.
Toys ‘R’ Us is looking to have more toys on display and improved store experience to gain an edge over their online competitors.
Toy ‘R’ Us Has A Debt Of $5 Billion
And when I say that, it’s in USD, guys. That’s S$6.69 billion. But that’s not the worse part. Out of that US$5 billion, US$400 million are debts that are due next year.
And the company has US$301 million in cash on its balance sheets.
They had managed to refinance some of their debts last year, extending the time they have to turn the business around before their debts go into billions.
The company have mentioned a couple of alternatives for themselves, from raising additional finances to filing for bankruptcy.
But don’t worry, not everything is set in stone yet.
The company has announced that they will provide an update after earnings for the second quarter of the fiscal year are announced on 26 September 2017.
So keep your fingers crossed, yeah?
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This article was first published on goodyfeed.com
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