According to someone familiar with the matter, Toys”R”Us Inc.’s advisers and lawyers have rejected an eleventh-hour offer by a billionaire toy manufacturer that would have allowed some U.S. stores to remain open. The Wall Street Journalreports Isaac Larian, founder and CEO of Bratz dolls manufacturer MGA Entertainment, Inc., made a $675m offer for the bankrupt retailer. An additional $215 million was offered for Canadian operations. The person who spoke confidentially said that Toys”R”Us Canadian operations didn’t receive any other bids from unidentified parties.
Total Retail’s Turn: This story highlights how important retailers are to certain manufacturers. Larian argued that Toys”R”Us filing for bankruptcy in September would mean the end of many toy retailers. Larian also stated that he had a personal motivation to share his Toys”R”Us experience and knowledge with his grandson and future Toys”R”Us children. In a statement emailed NorthJersey.com , Larian stated that he hadn’t been notified of his bid being rejected.
Last month, Larian was the subject of headlines when he launched a crowd funding campaign to raise $1 million to bid for Toys “R” Us. The campaign invited the public and others to participate in #SaveToysRUs. Its goal was to ensure that future generations can “always” be Toys”R”Us kids and to save employee jobs that could be lost if the company closes down.
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Old Navy will open 60 stores in 2018
Old Navy, a discount apparel brand will open 60 additional stores in the U.S. this fiscal . This will bring its total to over 1,000 locations. Gap Inc. currently has more than 3500 stores worldwide. Gap Inc. is currently reducing its Gap and Banana Republic store fleets, which hasn’t performed as well lately as Old Navy or Athleta. These moves are part the retailer’s revised growth strategy, which was announced last year. It called for approximately 200 Gap stores and Banana Republic shops to close by 2020. Old Navy will be opening approximately 150 new stores in the coming months.
Total Retail’s View: Old Navy helped Gap Inc. weather difficult times. Its namesake brand and Banana Republic both have struggled with sales and profits, much like many traditional brick-and mortar fashion retailers. Old Navy is in an off-price category that has been a bright spot for the industry in recent times, with retailers like T.J. Maxx and Ross Stores winning more consumers’ wallets. Old Navy plans to expand its physical store presence in order to keep up with its competition, many of whom don’t have an e-commerce site. This is a rare thing in today’s retail market. The retail store isn’t dead, but it wasn’t always.