Toys R Us CEO: thinking small key to recovery

Thinking small – that’s the key to a Toys R Us recovery, according to CEO David Brandon. In a briefing at the US-headquartered toy retailer’s Times Square pop-up store, Brandon unveiled what the company has dubbed Project Sunrise – the plan to address a crippling $5 billion debt burden and reposition the company better to fight the rising competition from online retailers and discounters. Under the plan – which while specific to the US and Canadian operations will likely drive strategies in international markets as well – the company will revamp its larger stores and  focus on reducing the footprints of its standard stores. Toys R Us US sought Chapter 11 bankruptcy protection on Monday after calling in restructuring experts. It was in part promoted by some suppliers stopping shipments to stores because of growing outstanding payments. Stores outside the US, including the Asia joint venture with Fung Retailing, are unaffected by the Chapter 11 process. The Wall Street Journal this week reported that suppliers are owed more than $200 million by Toys R Us, with Mattel the worst affected, owed $159 million, Hasbro owed $59 million and Lego owed $32 million.

Source: www.insideretail.com