Over 50% of Americans shop online or at discount stores such as Wal-Mart. Could this be a reason why Toys ‘R’ Us is preparing for bankruptcy? Toys ‘R’ Us is $5 billion dollars in debt. They are currently working on a loan to fund its potential bankruptcy. This is assumed to come before the holiday season. A new store has also opened up in Times Square in New York City to attract more shoppers as the holiday season approaches.
Another reason for their potential bankruptcy could be that many children play with tablets more than traditional toys these days. Touch screen devices have been most popular for children say over 60% of parents. Toys ‘R’Us being the biggest chain for toys is suffering the most because of this. They have yet to comment on any of these findings and haven’t confirmed their potential bankruptcy plans.