Skip to main content

I have never outgrown visiting large footprint toy retailers. News is circulating in business pages that Toys R' Us ( I can't print the backward "R") is in financial trouble and will likely close it's retail door. "Toy's" sold model railroad product and created some uncataloged Lionel 0-Gauge product. They created a TOFC I have never found but always wanted. #6-16378 ( 1992-93 ). It is clear there are large changes in the toy business and Lionel creates "Made to order" .. Which means to me .. "You can't really see what till you buy it" (?). Change is always with us and I wonder how many will really miss the Toys R' Us for your model RR supplier? Will the Lionel Toys product keep or gain it's value?  Here's one. 

Attachments

Images (3)
  • s-l1600-2: Toys R'
  • s-l1600-1: Toys BC
  • s-l1600: Toys BC boxed
Original Post

Replies sorted oldest to newest

As I recall from a radio article on NPR, Toys R Us was a leveraged buyout, and they buying compan(ies?) went deep into debt to pull it off. As I recall, TRU is going into Chapter 11 (??), which means they intend to pay all debtors a portion of what they owe and become something of a new company and intend stay in business.

So they part about "likely to close its retail door" is premature.

Still glad I don't have to compete with Amazon.

illinoiscentral posted:

As I recall from a radio article on NPR, Toys R Us was a leveraged buyout, and they buying compan(ies?) went deep into debt to pull it off. As I recall, TRU is going into Chapter 11 (??), which means they intend to pay all debtors a portion of what they owe and become something of a new company and intend stay in business.

Heard that the leveraged buyout left Toy R Us the company in huge debt. Was in one a few weeks ago to get some Minions gifts for two friends young children as I was heading to visit them soon. Didn't find anything remotely spectacular and hesitated about purchasing something they may have to return. Glad I didn't purchase. Though I'd hate to see them go, the stores don't seem to be attracting customers to sustain them.

Last edited by BobbyD
 

They are staying open, just restructuring their debt.  They may close a few stores but they will probably survive and be fine.   

They're 5 billion in debt and this move will let them stay open through to the other side of Christmas; after that closures are fully expected for stores where they do not get serious movement on leases. 

Have not been in one in over a decade; one nearest me last time by looked about as shabby a store could get with a huge empty parking lot.

Times have changed in what kids want and how people "shop" and TRU didn't.  Think about all the closed hobby shops - same song & dance......

I'd bet that some landlords are celebrating.

My youngest is approaching 26. Even when we were still buying children's toys, our local Toys-R-Us didn't have that much that was of interest to my kids. We did get some electronic game equipment there.

I believe that Toys-R-Us had some custom decorated stuff made by Lionel, and had some custom sets done that featured those items. But it was all low-end, mass market stuff.
I expect that there are folks that are interested in collecting those items.

How long has it been since Toys-R-Us carried any Lionel?

I went to a Toys R Us in National City California last December, it was pretty busy. However I was their to buy stuff for my cousins 2 little girls and bought some stuff for Flatcar loads from the diecast department. Got the blues mobile and Chicago Police Car for 15 each and I keep looking for the other 2 in the collection, The state Police Car and the Blues mobile (Before the mic and after the mic fell off in the movie)

40 years ago, when TRU was more of a toy Sam's Club, they had some MPC sets, cars and transformers at prices at or near mail order and shipping. (SC look, no membership.)

When the lost the SC look, the prices went up.  Another store which lost its roots.

The TRU on the Katy near Beltway 8 in Houston had more Baby than Toys.  They could get rid of the Baby and sublease the space if contracts permit.

Last edited by Dominic Mazoch
Roger Peet posted:

I have never outgrown visiting large footprint toy retailers. News is circulating in business pages that Toys R' Us ( I can't print the backward "R") is in financial trouble and will likely close it's retail door. "Toy's" sold model railroad product and created some uncataloged Lionel 0-Gauge product. They created a TOFC I have never found but always wanted. #6-16378 ( 1992-93 ). It is clear there are large changes in the toy business and Lionel creates "Made to order" .. Which means to me .. "You can't really see what till you buy it" (?). Change is always with us and I wonder how many will really miss the Toys R' Us for your model RR supplier? Will the Lionel Toys product keep or gain it's value?  Here's one. 

The Toy's R Us near me hasn't had Lionel trains in years. One of the stores closed a few years ago.

Here's my take: TRU are staying open through the holidays, because that's when they will make the most money, giving them an infusion of capital, which may be used to pay costs (as opposed to paying dividends) The company is about 5 BILLION in debt, so they will still be behind the eight ball. So, why would they file a Chapter 11? Because some investors may need to take a loss for taxes. In the long run, however, TRU is in the arc of a long decline. PERSONALLY: I recently bought a Fast track 072 switch from Amazon. It came to me from Legacy Station in two days at a decent price and works perfectly. I didn't go to Legacy Station, but to Amazon.  

Doesn't seem like they're going to be closing anytime soon. I found it interesting that one article I had read mentioned the huge debt from the investors taking it private, and it went to explain that if it weren't for those huge debt payments, the company might actually be profitable (small profit but a profit none-the-less). Anyway, Hasbro and Mattel need them too much. They'll linger on much as Best Buy and Barns N Noble have.  Here's an interesting article: Boomberg article

I have young children so we go there often. The store near me was refurbished a few years back and is always crowded. Last trip a couple weeks ago, there were three registers open and we still had to wait a good 5 minutes or so to check out. The prices here are pretty close to what I find in Walmart or Target. Plus they price match if sold by Amazon (not on Amazon marketplace by third party) or another nearby retailer.

 

-David

 

 

 

Roger Peet posted:

I have never outgrown visiting large footprint toy retailers. News is circulating in business pages that Toys R' Us ( I can't print the backward "R") is in financial trouble and will likely close it's retail door. "Toy's" sold model railroad product and created some uncataloged Lionel 0-Gauge product. They created a TOFC I have never found but always wanted. #6-16378 ( 1992-93 ). It is clear there are large changes in the toy business and Lionel creates "Made to order" .. Which means to me .. "You can't really see what till you buy it" (?). Change is always with us and I wonder how many will really miss the Toys R' Us for your model RR supplier? Will the Lionel Toys product keep or gain it's value?  Here's one. 

Just the latest from Mitt Romney's Bain Capitol organization. Buy a going organization with leveraged money. Then split the business up into profitable real estate in one pile and everything else in another. Then sell the real estate to pay themselves and the leverage lenders then walk away from the carcass.

Bogie

Wow, I had no clue they were in any trouble.

I collect "sarge" items from the "Cars" movies, so I've been into the local one plenty of times over the years. I rarely bought much stuff, though.

C W Burfle posted:


How long has it been since Toys-R-Us carried any Lionel?

Heck, I didn't know they'd ever carried any model train stuff!

I remember back in the day, circa 1970, I begged my dad to bring me to Toys R Us.  It was in a western suburb of Chicago.   I had money from paper routes and caddying etc. burning a hole in my pocket and that seemed like a good place to spend it.  I settled on a baseball glove that I still have.  I'm sure they don't have sports gear there anymore, and kids don't buy stuff with their own money either.  I know they had train sets back then, I would think they still have some.  Probably not Lionel though.  Who can afford that on a paperboy's cut.  That said, a caddy makes like $70 a loop now.  In my day it was $6 with a steady guy.  Times have changed, as they always will.  To answer your question directly, no, train collectors will not miss Toys R Us.

Last edited by William 1

They sell some model train items online - even Lionel. 

Toys R Us got into deep doodoo when they acquired FAO Schwartz, Imaginarium among others. Also, they sell their own branded toys, which probably doesn't help their bottom line. TRU will remain open, and like a previous poster said, the stores will be combination stores of Babies R US/Toys R Us. When I think back, the stores had much more product available. I noticed now, more product coming in for the holiday shopping season. The other 8-9 months out of the year is more geared toward 'impulse' buying, whatever happens to be trending, or some promotional event with a toy company.  It's not just TRU that's affected, I noticed Target and Walmart, which usually begin their holiday 'reset' of the toy departments are behind, and the toy departments are significantly scaled back from what they once were.

The way children play now is much different compared to years ago - they're involved in more outside activities, play is more 'organized' and not spontaneous as it once was. Couple that with the tech gear - iPads, iPhones, PlayStations, Xbox etc. the time for creative play has diminished somewhat. Look at Lego - that's a company that is taking a hit as well. 

I believe this is just the tip of the iceberg. All the big ticket stores are hurting and I don't think whatever they try will change the downward spiral. Shopping habits are changing with the younger generations. They just go on line and order it. I hate to see it come I shop the old fashion way. I go to the store to try it on if it is clothing.............Paul

OldBogie posted:
Roger Peet posted:

I have never outgrown visiting large footprint toy retailers. News is circulating in business pages that Toys R' Us ( I can't print the backward "R") is in financial trouble and will likely close it's retail door. "Toy's" sold model railroad product and created some uncataloged Lionel 0-Gauge product. They created a TOFC I have never found but always wanted. #6-16378 ( 1992-93 ). It is clear there are large changes in the toy business and Lionel creates "Made to order" .. Which means to me .. "You can't really see what till you buy it" (?). Change is always with us and I wonder how many will really miss the Toys R' Us for your model RR supplier? Will the Lionel Toys product keep or gain it's value?  Here's one. 

Just the latest from Mitt Romney's Bain Capitol organization. Buy a going organization with leveraged money. Then split the business up into profitable real estate in one pile and everything else in another. Then sell the real estate to pay themselves and the leverage lenders then walk away from the carcass.

Bogie

Same thing Bain did to Kay Bee Toy & Hobby (KB Toys) a few years ago. They are now all gone. I think Toys 'R' Us may have gotten some of the remains of KB, but not much in the way of merchandise or stores.

I still take my grand kids to Toys 'R' Us at least once a year or so. Guess it's time for another visit, just in case.

OK, here goes the old guy. I was looking at a 1948 Sears Catalog the other night. There is a web site with most of the old catalogs . Lots of fun to look at them. http://www.wishbookweb.com/  It really struck me, how different our toys where then compared to now. Most but not all were really learning toys like kids tools, sewing machines, tinker toys, wood burning kits, board games and of course erector sets. Lots of Marx and Lionel trains too. The last time I was in TRU there was very little of those kinds of thing. I remember we had very few real toys. I had my trains and a few toy cars or planes but really not much more. We made carts from old wheels and a few boards, cardboard to slide down hills and any time it rained we had dirt clods to wage war. It was fun and us kids did stuff together. The new stuff you "play" mostly by yourself. I don't see the fun in that. Well just a thought. Don

I remember some Lionel trains in TRU on Long Island maybe into the mid-80's (or a little earlier?).  I was buying HO stuff at the time, when it was still a somewhat large part of one aisle at both Toys R Us and also the (at the time) competing Child World and Play World stores.  I bought HO trains (not fancy ones, mind you - but Bachmann sets and maybe rolling stock, also Tyco and maybe some Life Like accessories (grass matts, lights, road signs, etc.).

I'd miss TRU today not for model trains, but I still will occasionally browse the new Star Wars items (been a fan since I was a kid - not that I have a big collection of recent stuff), and also because I shop there for both Christmas and Birthdays for my nieces.  I much prefer being able to see most items in person (especially if giving them as gifts) where I know the item is in decent condition and doesn't look like the package got snarled in a conveyor belt or other mishap.  I prefer gifts I give to look presentable, even the packaging.  That's an unknown and further complication when ordering something on-line.  Not to say I have never done it when I can't find something in TRU, but I default to the in person purchase as my first attempt.

-Dave

I am from the dime store and dept. store basement era...l was in one twice, years ago, and did not return for a decade as l found no trains. Then l wanted to find a realistic stuffed rabbit as a holiday gift. I found a perfect one the recipient loved, as it was just like those that lived around the house. I have just not thought to return but appreciated their having the exact right thing. It never gained my reverence as did Woolworth's and it's competitors, nor has Wallyworld or any other recent market. Have l missed anything?53

I never go to a store anymore, everything I get I go online. Every Christmas gift is bought online, most every train I buy is online except for York twice a year. 

The way I shop is how millions shop and we wonder why stores are closing. 

Grocery stores are the last bastion that most of us go to but even they are transitioning to home delivery, like pea pod and the like. 

Two thoughts here:

First, as many here have pointed out, it is unlikely at this time that they will be closing their doors. This is more of a stunt to crawl out from under the debt owed to their suppliers, ie. sticking them with the bill for the LBO.

Second, TRU has never really been much of a factor in the train market, and wouldn't be missed, certainly not by me anyway.

We should all be thankful that Lionel is not one of their creditors. They may have been too smart to have gotten involved.

 the composer is acting up. I hope this makes sense because editing is making it worse..

Toys R Us always had the largest amount and selection of the latest toys. The prices were slightly higher higher across the board. The Lionel there as I recall was never anything other than starter sets , extra track in blister packs, and maybe a crossing gate, whistle shack, etc....but usually most were not electric versions of those either. Both were there, but Tyco trains were pushed in MPC days not Lionel. At one time, every dept store seemed to have a service dept. including TRU (good or bad with trains is another issue), but they began phasing them out in the late 60s and few if any remained by the end of the 70s. I visted quite a few Toys R Us I suppose. A little over a dozen from tbree states ...nope four.

  One west of Lake Mich. somewhere. Some small ramdom mall the Toys R Us was keeping alive for other small buisnesses. If that closed, I bet that and a few other would be at similar risk too. (gorgeous little mall inside...just empty for two weeks, maybe ten cars all day, most went to a doctors office or Toys R Us...it was spooky. )

Store condition was almost always a middele and/or lower management issue or bad neighborhood issue. Theft a side issue, some stores and it's wares are treated with more respect by customers than another 5 miles away, despite having great managers at both stores. Employees are usually drawn from the same local population as the shopper and will often refllect that with the same atttitude about careing in general.  Condition is near luck of the draw anymore.   When I was young, if I or my pals grabbed a toy to look at or show to elders to suggest they try, or plead for it myself, or just plain discuss it, I had better put it back right as possible after because everyone knows that effects the bottom line and the next customer....today we toss meat into the flour isle to rot and contaminate without thought except that the didn't have to walk two isles....(come on, dump it on the cashier at least)....retail sidetrack, but the most recent act of stupidity I thought of..... Toys R Us at Christmas was a madhouse even in the best areas. ... I watched a remodel get destroyed in a single year but the one down the road, actually in a worse area was fine.

    It's the first place I ever saw "kids on leash" , lol. It is also where I saw my first Polar Express and Harry Potter stuff. .....Found the large Star Wars figures there my pal had sought out for bookends...Cabbage Patch/ Beanie Babies......many "traditional" plastic models...hobby rocketry supplies... small Star Wars figures (the first toys I bought to display. Toys R Us had them all, nobody else did. Luke R2 and the landspeeder, C3P0, Ben, Jawa, and a "Tuscan Raider" came along asap. I used my knowledge of PRR tuscan to mess with local "experts" (ie super foamers) wildly theorizing where the name might tie in; wind um up & point at cliff, lol.

..Cox engine supplies...replacement slot cars...some special Six Million Dollar  Man my brother wanted more than life itself (stopped eating & drinking, hospital)....Holly Hobby... Evil Knevel trike.. Mrs Beasley, and G.I. Joe with the full beard and Knug-fu grip!   That's just what I recall that was always there that others couldn't get any of...including one of the best Sears Toys in the country.

....but the prices meant it was often the last stop for a family too, so I imagine they aren't going to have an easy time of it with a need to be more competitive price wise. The higher price stigma has run too long for fast change in public opinion.(imo)

 

at a local store, I noticed the number of isles hasn't changed, but the type variety has dropped to basics, of vehicles, & figures for both sexes and deliberately androgynous as could be managed unless it was reality style licenceing, which is how the figures & vehicles are seperated there. E.G. All the cars used to be grouped together inwheelse or rectangular sections with brands stacked here and there; basically columns of  various widths.

The new layout for over half an isle was tv/media marketing by show vertically in thin columns. I.e, it created a matrix/graph chart out.of the display: vertical rows by media name; horiz. rows by the famous/star figures only. under that all the vehicles at the same height , or accessories if there wasn't a car, but never accessories higher than a car is one Vert. column, figures of "extra players" and "dumb" accesories at the bottom, no shelf spot. At $5-10ea averaged Id say whats being marketed hardest is $ per square inch, they could give a crap what we would like to see.

OldBogie posted:
Roger Peet posted:

I have never outgrown visiting large footprint toy retailers. News is circulating in business pages that Toys R' Us ( I can't print the backward "R") is in financial trouble and will likely close it's retail door. "Toy's" sold model railroad product and created some uncataloged Lionel 0-Gauge product. They created a TOFC I have never found but always wanted. #6-16378 ( 1992-93 ). It is clear there are large changes in the toy business and Lionel creates "Made to order" .. Which means to me .. "You can't really see what till you buy it" (?). Change is always with us and I wonder how many will really miss the Toys R' Us for your model RR supplier? Will the Lionel Toys product keep or gain it's value?  Here's one. 

Just the latest from Mitt Romney's Bain Capitol organization. Buy a going organization with leveraged money. Then split the business up into profitable real estate in one pile and everything else in another. Then sell the real estate to pay themselves and the leverage lenders then walk away from the carcass.

Bogie

You realize that there was a willing seller(s) as well.  Were you willing to buy the firm yourself or are you merely looking to restrict the rights of other people to dispose of their property as they see fit? The buyers, sellers, and lenders in these transactions are all big boys and girls and are very well advised.  Sometimes the deals do not work out and do you know who loses out then?  The buyers and the lenders who financed the deal.  It's called capitalism.  There is a certain amount of creative destruction that goes on as part of it.  Kill the destruction, and you kill the creation that gives us Amazon, Google, Uber, and Apple.  If you don't like it, move to France and check out how well they are doing.  How many of those firms are in Europe?  Hmmm, let me think, maybe they are too busy suing US firms who are eating their lunch while they figure out how to preserve a 19th and 20th century industrial economy.

As to the store, growing up in the 1970s and 1980s I remember that it had a cool selection of all toys other than o gauge trains - RC cars, slot cars, action figures like GI Joe and Star Wars, and video games too.  But like all things, times change and businesses must adapt.  Toys R Us did not adapt correctly.  I suspect that if the firm's income statement shows profitability once the debt load is stripped out to all or some degree, the firm will live.  Another consideration is the real estate.  If the firm's real estate, once liquidated, will provide a higher recovery for the creditors, the firm will likely be fully liquidated.  We have a good bankruptcy process in this country and it has the ability to sort these issues out in the most equitable manner possible for the creditors.  It is a shame that people will lose their jobs but in a healthy and well functioning economy they will hopefully find other work quickly.

I think Toys R Us will be "history". Major suppliers may not even ship to them before Christmas due to huge amounts of money already owed to them. Train-wise, this was never a place to shop, IMO.

Amazon does not actually "sell" certain things...some suppliers sell THROUGH Amazon. Air guns and supplies come from a major on-line air gun supplier. Used books come from many sources, including local Goodwill stores. I would not be surprised if trains listed on Amazon didn't come from names we know.

Add Reply

Post

OGR Publishing, Inc., 1310 Eastside Centre Ct, Suite 6, Mountain Home, AR 72653
800-980-OGRR (6477)
www.ogaugerr.com

×
×
×
×
Link copied to your clipboard.
×
×