Toys R Us shut down hundreds of their stores nationwide, but rumor has it that they are coming back. Toys R Us declared bankruptcy and started liquidating the business. Due to the competition from other retail stores such as Walmart and Target, they weren’t selling as much. Profits were low and they collected over $5 billion in debt! With no other choice, they decided to auction off the company. Recently, however, the auction was called off.
It is still undetermined what will happen to the company, but it is likely that Toys R Us might make a comeback. When a firm enters the market, it can lower the profit of existing companies. In this situation, it’s a little weird because it is an old firm entering the market as a new firm. People already know what to expect from their company and it wasn’t doing well. Toys R US has to come up with a new way to attract customers. Hopefully, they will do well.
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