Toys R Us declared bankrupsy

The title says it all. Now I guess we'll see what this truly means or what will really happen, but it could mean pretty sweet deals for clearance games.

Yeah I am gutted I loved going to Toys R Us when I was a kid I hope the UK Branches are safe.

Well, before anyone starts planning a shopping spree, it is Chapter 11 and not Chapter 7. This means that, at least at this time, they have more debt than they can manage, and would like to figure out a way to recover and remain in business. So, creditors are being putting on hold, debt is being restructured, and the goal is to emerge post bankruptcy as a better, stronger enterprise.

Chapter 7 is burn it down, everything must go, take what you can and don't look back.

Chapter 11 does often lead to the same result as Chapter 7, and likely there will be certain underperforming stores closed, but, don't expect anything crazy immediately.

Well, before anyone starts planning a shopping spree, it is Chapter 11 and not Chapter 7. This means that, at least at this time, they have more debt than they can manage, and would like to figure out a way to recover and remain in business. So, creditors are being putting on hold, debt is being restructured, and the goal is to emerge post bankruptcy as a better, stronger enterprise.

Chapter 7 is burn it down, everything must go, take what you can and don't look back.

Chapter 11 does often lead to the same result as Chapter 7, and likely there will be certain underperforming stores closed, but, don't expect anything crazy immediately.

Originally Posted by futiles

Or another invesror/company could come in and but them out, though I doubt this will happen. I wasn't really thinking that it was the liquidate everything just yet either as this company has already had a restructuring once before and the result was Babies R Us. So where we go from here only time will tell, this is just a preventive heads up to watch this company closely as we may at least be getting some good deals as they try to bring in the profits.

Or another invesror/company could come in and but them out, though I doubt this will happen. I wasn't really thinking that it was the liquidate everything just yet either as this company has already had a restructuring once before and the result was Babies R Us. So where we go from here only time will tell, this is just a preventive heads up to watch this company closely as we may at least be getting some good deals as they try to bring in the profits.

Originally Posted by B8TINGU

Except "good deals" usually don't bring in profits, they bring in revenue. In chapter 11, they are going to have some outside oversight as to what they can and cannot do.