Tuesday, February 19, 2019

Toys ‘R’ Us comeback is met with skepticism by major toy makers

Yahoo Finance
You can’t blame toy maker executives for viewing reports of Toys ‘R’ Us potentially re-opening up U.S. retail stores with heavy skepticism — if not utter disdain at the prospect of trusting company bigwigs at the retailer again.

The bankruptcy of Toys ‘R’ Us in the fall of 2017 — and subsequent closing of hundreds of U.S. retail stores months later — was a punch to the face of toy companies that relied upon the chain as a key outlet for their latest toys. After years of mismanagement following a disastrous leveraged buyout in 2005, toy makers such as Hasbro and Mattel had to endure a painful 2018. It was headlined by terrible sales pressure and weak stock prices as Toys ‘R’ Us liquidated inventory and shuttered some 700 U.S. locations by the spring.. . . more