NEWS

Toys R Us US operation said to be engaging in augmented liquidation sale

Published on: 25th April 2018

Liquidator is believed to be introducing additional, non-TRU stock to stores as part of the process.

According to sources familiar with the matter, the US Toys R Us operation has sold the rights to sell the remaining inventory in its stores to a liquidator. According to the source, part of the deal includes the right for the liquidation company to do whatever it wants with the stores during the process.

In practice, what this means is that not only is the liquidator liquidating existing TRU stock at store level; it is also said to be introducing hundreds of thousands – if not millions – of non-TRU related toys into the stores.
The stock, which is pre-priced and ready for sale, won’t apparently scan at the register.

While there is no suggestion that the approach is in any way illegal, it certainly raises concerns on several levels. One supplier told Toy World: “This additional stock will saturate the market for months, there is no way it won’t affect sales at other retail accounts.”

Furthermore, given the circumstances and the sheer volume of product involved, there is a strong likelihood that there is little oversight on the additional stock is being introduced into stores, posing a risk to standards and raising compliance issues.

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