[Joe Moore]

Quote:

Originally Posted by VashTS

From what I understood, the BabiesRUs is the problem. TRU seems to be doing fine, but the babies R us is a big money loser for them bc of Amazon.

That's a problem of its own, yes. The Chapter 11 filing was largely based on them owing $400 million in the coming year, and $7+ billion in debt (against $6+ billion in assets) over the coming years. That wasn't a far enough gap to consider liquidation, as an extension and restructuring of payments could see them out of it.

They definitely need to rethink how they operate once this clears up. They don't carry enough other high profit items to become a loss leader (as Walmart and Target do). They also sit on enormous amounts of inventory of saturated product types (remote control cars, dolls, sports equipment, art supplies, etc.). The business side won't come out of this unscathed, but it's not like they're in danger of closing up the retail business any time soon.