In recent times, Toys “R” Us’ reputation has many questioning if play time is almost over. The company filed for Bankruptcy in September of last year and has missed paying their debts to their suppliers.
With a private company, information can be withheld and not shared with the public although at times, it is in their supplier’s best interest to do so.
These payments to suppliers stopped abruptly, not giving any real explanation as to why it has happened. They have even stopped trying to retrieve money from vendors before filing for bankruptcy.
Could this mean that the company plans on closing?
When companies struggle, they usually seek another company to acquire it, issue bonds or preference shares or even speak to lenders for refinancing debt. However, Toys “R” Us has a defaulted bond that was slated to mature October of this year with its current price at $14.38, when being issued at $98.40.
With this bad news, two of the United States largest toy markers Mattel Inc. and Hasbro, Inc. has felt the impact as it relates to their stock prices.
MAT dropped 3.4 percent to $14.49 yesterday and closed lower today at $14.47 per share, with their day low of $14.44. Additionally, HAS fell a little below 1 percent to $89.32 yesterday and closed today at $89.35, with a day low of $89.15.
All these signs point to the direction of the closure of the business, however we will watch this company a little more to see what their strategies will be.
If you want to start investing with SSL but don’t have the time to monitor the market or to conduct the trades yourself then you can choose one of SSL’s managed Financial Planning products. We offer a variety of products for every type of investor and if you are interested in managing online trades yourself and having complete control over your investment portfolio then you can try SSL’s Brokerage account.