"My assumption is that there's about half a billion dollars worth of toys that have been produced for Toys "R" Us with no place to go", Strategic Marks president Ellia Kassoff told CNNMoney.More news: Trailer Arrives For Mr. Rogers Documentary Won't You Be My Neighbor?
While we still believe Mattel's shares are significantly undervalued, we believe near-term headline risk surrounding the Toys "R" Us liquidation could continue to weigh on shares over the next several months before stability in share performance could resume. Toys "R" Us released a statement on March 15 saying the company plans to close all 735 stores in the USA; costing 33,000 workers their jobs. It soon ballooned into one of the country's biggest toy retailers. At that point, the stores will close for good, though the company is working on a package deal to sell its Canadian operations that could keep up to 200 profitable U.S. stores open.
Amazon would not be buying the properties to keep the Toys "R" Us brand alive. The company filed for bankruptcy in 2004. Strategic Marks LLC, the company that owns intellectual property rights to the KB Toys brand, said they are exploring the possibility of re-opening the chain. Its downfall had been blamed on a heavy debt load and relentless trends that undercut its business model, from online shopping to mobile games.More news: Afghanistan: Bomber kills 30 worshippers in an attack on a Kabul shrine
Toys R Us' liquidation includes a plan to close or sell all 735 of its remaining stores, but sales at these additional stores aren't set to begin until Thursday in at least some locations. "Also, if you're making a purchase, understand it's a final sale".More news: 1 of Uber's self-driving vehicles hits, kills pedestrian in Arizona
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