Toys R Us bankruptcy looms, but China’s market stable

By Chen Qingqing Source:Global Times Published: 2017/9/19 22:03:40

A store of Toys R Us in Beijing, capital city of China. Photo: Chen Qingqing/GT



 

A store of Toys R Us in Beijing, capital city of China. Photo: Chen Qingqing/GT



Despite the looming bankruptcy of Toys R Us triggering concerns among investors, an employee at one of its stores in Beijing said the business is doing well.

"We receive quite a number of customers every day," an employee of Toys R Us in Chaoyang Joy City in the eastern side of Beijing told the Global Times on Tuesday.

The US toy retailer has filed for Chapter 11 bankruptcy protection, CNBC reported on Monday.

The retailer has $4.9 billion in debt, $400 million of which has interest payments due in 2018 and $1.7 billion of which is due in 2019.

"We heard the bankruptcy news, but nothing has changed here," the employee said.

NBC News said the largest US toy store chain has been struggling with the growth of online shopping and discount chains.

A Chinese customer calling himself Simon said he comes to the store in Chaoyang Joy City often. "The quality of toys in these stores is more trustworthy than that online, and here you can select them carefully." he said.

The company has been rapidly expanding in China in the past few months, and it had 134 brick-and-mortar stores in China as of the end of April, Beijing-based China Times newspaper reported in April.

The company's bureau in China has not replied to the Global Times  request as of press time on Tuesday

Posted in: COMPANIES

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