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« Brands and Trust; A Value(s) Proposition | Main | What Are "Family Entertainment Centers" & What Do They Have to Do with the Toy Industry? »

September 22, 2017


Add to this the fact that age compression is taking a bite out of traditional toy sales and kids getting hooked on iPads and other electronic items certainly makes this more of a challenge than the industry had faced previously at least for traditional toys.

Do you find it strange that Mattel is owed more than twice as much as Hasbro? Caught my eye.
It's a very impactful blow to not only these big manufacturers listed with millions of dollars, but for small vendors who scrapped together the funds needed to fill a large order (probably their largest single order) from Toys R Us months ago, have shipped the order to the retailer, and now are learning they won't be paid, it can be almost impossible to move forward since they can't be made whole.

Thanks Richard. Great perspective!

Just to correct a fact..noodle kidoodle never went was sold to zany brainy who went out of business

I believe it was sold due to financial problems. If my memory is incorrect, please let me know.

From what I have read, there was a "special $325 Million Dollar fund" that was a condition of the bankruptcy to pay Mattel, Hasbro and other larger trade creditors. Nobody is talking about that and how those guys are managing to come out OK in this process while the little guys are not.

Richard, excellent and thoughtful question and answer. Here is what I see as the key to TRU's future success. Change the people or change the plan. The retail toy industry is controlled by millennials, but the toy industry (including TRU) is managed by baby boomers. Every day more Millennial Moms and Dads are created. They want a very different shopping experience. TRU needs to figure this out right away or they will be irrelevant in 2018 and beyond. I want to see them rise, but I can it happen without a radical change in how they do business with suppliers and consumers.

Good insight. Without a doubt retail is declining and toy manufacturers need to find new channels to deliver toys to consumers. Seems like e-commerce sites (e.g. Amazon) and toy subscription services (e.g. ) are the obvious winners from this decline.

Kmart past and current woes are important part of this history as well. Thought provoking article; thanks.

Any chance this will bring some more customers into the independent retailer sector? That would be one good thing...

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