With the rise in online consumer purchasing, traditional brick and mortar stores have struggled to maintain profits. Now, one of the most iconic brands in history is preparing to close their U.S. locations.
According to reports from Forbes, the famous store "Toys 'R' Us" is getting ready to shut the doors on their American storefronts. The news comes after a steady decline in profits in recent months.
"Toys 'R' Us Inc. is making preparations for a liquidation of its bankrupt U.S. operations after so far failing to find a buyer or reach a debt restructuring deal with lenders, according to people familiar with the matter. While the situation is still fluid, a shutdown of the U.S. division has become increasingly likely in recent days, said the people, who asked not to be identified because the information is private," reported Forbes.
While the news is major, it certainly isn't surprising. The store has really been in trouble for over a decade.
"The downfall of Toys 'R' Us can be traced back to a $7.5 billion leveraged buyout in 2005, when Bain Capital, KKR & Co., and Vornado Realty Trust loaded the company with debt. For years, the retailer was able to refinance its debt and delay a reckoning. But the emergence of online competitors, like Amazon.com Inc., weighed on results," read the report.
Since the news broke, fans of the famous toy store have taken to social media to share their thoughts. For many people, going to Toys 'R' Us was always a wonderful occasion. Many adults, even today, have great memories of visiting the retail giant.
What do you think about this? Do you remember going there as a child? Let us know! Also, read our breaking news story about the latest terror attack that killed at least 9 people, including a police officer.