TOYS”R”US is making a massive comeback this month with a new location at a prominent mall.
The beloved retailer notably filed for bankruptcy in 2017, but has hung onto a couple brick-and-mortar stores over the years.
Toys’R’Us is making a comeback with a new store opening in September (stock image)[/caption]
Another is set to arrive on the morning of September 20 within the Chicago Premium Outlets in Aurora, Illinois, per the mall’s website.
It stands at a considerable 13,000 square feet and will hold grand opening celebrations throughout the day, including the appearance of longtime Toys”R”Us mascot, Geoffrey the Giraffe.
There will also be face painting and balloon twisting for the children.
Additionally, the first 25 guests at the new Toys”R”Us at the Chicago Premium Outlets will get a Snoozimal plushie in full-size.
For the first 75 guests, there’s “swag bags” with a variety of items.
This Toys”R”Us is particularly tricked out and updated, with an arcade area inside that includes claw machines and the viral Japanese gashapon machines, according to a release from the company.
Parents can find all the top toys and games for the holiday season as well, including Barbie, Hot Wheels, LEGO, Nerf, Paw Patrol, and a variety of others.
GROWING LIST?
Over the past year, at least four new full-sized locations for Toys”R”Us have appeared, with the Chicago area store being the fifth, per a post from the retailer on Facebook in January.
The other eight include the following:
- American Dream Mall – East Rutherford, NJ
- Mall of America – Bloomington, MN
- Harlem Irving Plaza – Northridge, IL
- Tanger San Marcos – San Marcos, TX
Except, many consumers might not realize there are still far more than that around today through smaller pop-ups thanks to moves made by WHP Global.
WHP Global acquired Toys”R”Us through the bankruptcy proceedings when it was awarded a majority stake in Tru Kids, the previous parent company to Toys”R”Us and Babies”R”Us.
There have been plans from WHP Global to open about 24 flagship Toys”R”Us stores, with the Chicago Premium Outlets location seemingly being one of those locations.
Additionally, in July 2024, the company confirmed a license agreement with the Navy Exchange Service Command (NEXCOM) to have locations on military bases in the United States and worldwide.
How does bankruptcy work?
Bankruptcy is a specific legal process that helps companies eliminate debt they can’t repay.
The process allows businesses to start fresh and gain access to new credit.
Supervised by federal courts, bankruptcies allow a company to sell off its assets more easily to pay off creditors, according to Investopedia.
Chapter 11, a common process for companies, is used to restructure a business with the goal of remaining open – even if it means selling off most of the company’s properties.
Chapter 7, on the other hand, sells all of a company’s assets, putting it out of business.
Chapter 15, alternatively, allows for collaboration between American and foreign courts to conduct bankruptcy proceedings with “parties of interest involving more than one country,” per the United States Courts.
Although the first deal WHP Global made was in 2022 with Macy’s, which saw about 400 Toys”R”Us pop-ups inside department stores.
Toys”R”Us also has a website that’s fully operational and offers a wide selection of video games, toys, dolls, action figures, and more.
TOUGH SPOT
While the comeback for the retailer continues, the future was grim when it cited about $5 billion in long-term debt during the September 2017 bankruptcy filing.
Court documents also revealed that Toys”R”Us was spending about $400 million annually to pay off the debt, per The New York Times.
Toys”R”Us also hadn’t seen profit since 2013, struggling to compete with giants like Amazon, Target, and Walmart.
Liquidation sales began in March 2018, and over 800 Toys”R”Us and Babies”R”Us stores closed.
In January 2021, bankruptcy proceedings completed with all locations closed, until WHP Global came to the rescue in March of the same year.
Other top retailers have had recent bankruptcy struggles.
Big Lots, for example, came back with about 78 new stores across nine states this June, just months after a Chapter 11 filing in September 2024.
Forever 21 also closed all of its remaining US-based stores this year after filing for bankruptcy a second time.
