The retailer, which filed for bankruptcy in September, has stopped making the payments without providing an explanation, said the people, who asked not to be identified because the matter is private. Some of the people said they can’t get anyone at Toys “R” Us to respond to questions.
The company, which faces a $5 billion debt load, also recently stopped negotiating settlements with vendors on money owned before it filed for bankruptcy, some of the people said.
The struggles of Toys “R” Us have taken a toll on the two largest toymakers, Hasbro Inc. and Mattel Inc. Shares of those companies fell on Friday after Bloomberg reported about the possible liquidation, then dipped again today over concerns about missed vendor payments.
I know that for the larger toy manufacturers, they can switch to Target, Walmart and Amazon. The only risk I can think of is Toys ‘R’ Us paying them a fraction of the inventory purchased, and the remaining retailers having more leverage over Hasbro and Mattel for negotiating lower toy prices.
Submitted March 13, 2018 at 03:28PM by COMPUTER1313 http://ift.tt/2InhtOn
