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Now those payments are at risk in a dramatic turn of events as the iconic toy retailer speeds toward U.S. liquidation.
More than a dozen executives, specialists and lawyers interviewed by Reuters said they expected many small vendors to go bankrupt due to the disappearance of Toys ‘R’ Us and Babies ‘R’ Us in the United States.
While the downfall of Toys ‘R’ Us came quickly in the United States, the Wayne, New Jersey-based retailer is still trying to find a buyer for its businesses in Canada, Europe and Asia. In the meantime, it wants to keep stores stocked to maintain customers and value.
“We have a $14-$15m payment due that hasn’t been paid,” Isaac Larian, chief executive of Bratz dolls maker MGA Entertainment, said. “If I was a guessing man, I wouldn’t think I’d get all of it back.”
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