As if the Toys R Us news couldn't get any worse, CNBC drops this story.
"Toys R Us may soon liquidate its U.S. operations, sources told CNBC. One of those people cautioned, however, that the situation remains fluid".
The reasons may be that the debtholders HASBRO AND MATTEL saw their stocks fall today (Thursday, March 8th) in after-hour trade. "Hasbro fell more than 3 percent, while Mattel stock declined nearly 5 percent".
This all has to do with Toys R Us owning 3.1 Billion dollars in debt and an extremely poor holiday season . You can check out the full story here on CNBC.
AFJ's Take: The writing is clearly on the wall Junkies. Certainly, we rejoice at the discounts and sales but in the long term, we know that this marks the end of an era. Yet who is really to blame? Amazon? No. In fact, we blame Toys R Us for not adapting to the change in the toy buying market. When the racks and pegs and are littered with figures that are any 9 months to 2 years old, why would a child or a toy collector venture to Toys R Us anymore? Case in point, the images we took today at our local Toys R Us in New Jersey (seen below). They have tons of Wonder Woman action figures (out last May) and nothing but the same Star Wars Black Series figure (out in September of 2015). How many Constable Zuvios does one store need? We took these pictures today for a joke on our Instagram page. They aren't so funny anymore.
UPDATE (3-10-18): AFJ chatted about this further on Facebook Live. We posted that talk on YouTube (linked below).