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21 March 2018, 08:00 | Maryann Sutton
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Right now, the plan is to open about 1,000 pop-up stores ahead of Black Friday this year. According to Bloomberg Technology, the online retail behemoth is not so much interested in maintaining the beloved toy store's brand, as it is repurposing the soon-to-be-vacant spaces for its own purposes-purposes that may coincide with the company's increased push into fresh food.
One adviser for Toys R Us, Joseph Malfitano of liquidation specialists Malfitano Partners, described the Toys R Us sell-off as "probably the largest retail liquidation in the country's history". That forced the chain to divert resources from operating priorities in order to repay lenders. "Consumers will not put an end to buying toys because their local Toys "R" Us store closed its doors", Lennett said. Potential investors, like shoppers, seem to have lost interest in Toys R Us.
Phillips was not swayed by arguments by vendors that they would be better off if the Chapter 11 liquidation case was converted to a Chapter 7 liquidation, with the sale of assets placed in the hands of a court-appointed trustee.
On Thursday, the brick-and-mortar chain confirmed plans to close all of its USA stores, filing for Chapter 11 bankruptcy just six months after sketching out ambitious reinvestment plans meant to ward off accelerated competition in the industry. In fact, United States births hit a record low in 2016, with the current ration at 62 births per 1,000 women. But employees are likely to suffer, as will smaller toymakers who lack the diversified revenue streams of companies like Hasbro.
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