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Industry Focus

CG: What Toys R Us Taught Us

Industry Focus

The Motley Fool

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4.6854 Ratings

🗓️ 12 February 2019

⏱️ 25 minutes

🧾️ Download transcript

Summary

CG: What Toys R Us Taught Us

Reports came out earlier this week that legacy retailer Toys R Us might be trying to stage a second act. We break down what went wrong for the retailer in the past, what to watch for in retail stocks, and one company that seems to have gotten it right.

Stocks: TJX, FIVE, LOW, HD

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Transcript

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0:00.0

Welcome to Industry Focus, the podcast that dives into a different sector of the stock market every day.

0:08.0

It's Tuesday, February 12th, and we're talking about Toys R Us's second act.

0:12.0

I'm your host, Dylan Lewis, and I've got Fool.com's Dan. talking about Toys R Us's second act.

0:12.8

I'm your host Dylan Lewis and I've got Fool.com's Dan Klein on Skype.

0:16.4

Dan what's going on?

0:18.0

I am a surprise to be talking about Toys R Us yet again.

0:21.5

Did you play us in with like a slowed down version

0:24.4

of the Toys R.S theme song?

0:26.0

Like what a sitcom would do that in the 80s

0:28.2

to show that something sad has happened?

0:30.3

We won't know until after Dan Boyd has had his hands on this audio.

0:34.0

Will he? Who could say?

0:36.0

He likes to surprise us though.

0:38.0

Yeah, Dan, Toys R Us is one of those stories, kind of like Sears.

0:42.0

It just keeps coming back. It doesn't seem to go away.

0:45.0

Well, here's the problem. So Toys R Us is a lost example. The company declared bankruptcy and when it declared bankruptcy it had every

0:55.2

intention of coming back under a restructuring and it wasn't able to work that out with its with

1:01.8

its debt holders and that put it in a position where

1:04.3

I had to close all its stores give up its retail portfolio, miss an entire

1:08.3

holiday season for the most part it had kiosks and some Kroger stores and now in the US at least it's starting from scratch

1:16.4

And that is a very difficult position to be in even if the company no longer has that sort of looming debt that was sort of

1:24.0

crushing everything it was trying to do. Before we get into some of the more

...

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