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Don't blame Amazon for the death of Toys "R" Us.It's true, online shopping didn't help matters, but the struggles of Toys "R" Us predate the boom in online shopping. Many of its wounds were self-inflicted.The company's biggest problem: It was saddled with billions of dollars in debt. That debt stopped it from making the necessary investment in stores. And that meant an unpleasant shopping experience that doomed the chain. The company told employees Wednesday that it would close or sell its US stores after 70 years in business."If you're going to have that breadth of inventory, you need someone in the store to help you find it, help you experience it," said Greg Portell, lead partner at retail consultant A.T. Kearney. "It's hard to sell toys in a cold, warehouse environment."Even Toys "R" Us CEO David Brandon conceded in an SEC filing last fall that the company had fallen behind competitors "on various fronts, including with regard to general upkeep and the condition of our stores."Toys "R" Us' debt problems date back to well before Amazon was a major threat. Its debt was downgraded to junk bond status in January of 2005, at a time when Amazon's sales were just 4% of their current level.A year later the company was taken private by KKR, Bain Capital and real estate firm Vornado. The .6 billion purchase left it with .3 billion in debt secured by its assets and it never really recovered.The toy store faced several other big challenges at about the same time. There was the rise of big box retailers like Walmart, which now dwarfs Toys "R" Us in total toy sales. Last year toymakers Mattel and Hasbro each sold about billion worth of their toys at Walmart, more than twice as much as what they sold through Toys "R" Us. Target sold just about as many of their as Toys "R" Us last year.And like most retailers, Toys R Us also lost sales to online rivals such as Amazon that offered lower prices and quick shipping.But much of the chain's resources were devoted to paying off that massive debt load rather than staying competitive.When Toys "R" Us filed for bankruptcy in September 2017, it disclosed it had about billion in debt and was spending about 0 million a year just to service that debt.That burden crowded out critical strategic priorities, like making its stores a nice place to shop and paying employees.Tell us: How will you remember Toys 'R' Us?Brandon said in a filing last fall that the bankruptcy process would allow it to invest million in its stores. The company hoped to add playrooms where kids could try out toys and spaces for birthday parties, but it never got the chance.Brandon also vowed to spend more money on staff. With extremely low unemployment, competitors like Walmart are raising wages, while Toys 'R' Us was having trouble attracting the kind of help it needed. It said last fall it would spend million from 2018 to 2021 to raise starting wages and to reward and keep its most effective employees."Better employees make for happier customers," Brandon said in the filing.Despite sharply declining sales, Toys "R" Us was also extremely late to the game in closing stores. At the time of its bankruptcy filing, the chain had 1,697 stores -- more than it had ever had.In January, it announced plans to shut 182 US stores. Last month it filed for the equivalent of bankruptcy for its UK operations, where it had 105 locations. On Wednesday, hours before announcing the decision to close its US operations, it said it would close the last 75 UK stores.But the closings in recent weeks were far too little, too late. And as a result, now all of US stores will close, and probably most foreign stores as well.The-CNN-Wire 3698
EL CAJON (CNS) - A man who was caught looting homes vacated during the West fire in Alpine in July was sentenced Friday to nearly five years in state prison.Ardian Iseni, 30, was convicted last month of residential burglary and attempted residential burglary.The 500-acre West fire -- which broke out July 6 -- destroyed 34 homes and 21 other buildings and damaged another 20 homes and buildings.RELATED: 412
Donald Glover has revealed he and his partner Michelle White have welcomed a third son into their family, according to an interview he gave GQ magazine.The actor, musician, director and writer is famously private. The admission came during an interview with "I May Destroy You" star Michaela Coel for GQ magazine“You know I had (a kid) during the coronavirus,” Glover tells Coel.“I was in the hospital bed. My son had just been born, like, an hour before and I was watching the George Floyd video. It was such a weird moment. It was such an intense, weird moment, because I’m watching that video and it’s like eight minutes long, so you’re sitting there and I had just had this amazing, joyful, expanding moment, plus my dad had passed away recently, so [my son] was named after my father... I don’t even know what, really, the word is to describe it. It was just expanding: the empathy and compassion and the terror and the joy of it.”Glover and White have three sons; Legend was born in 2016, Drake in 2018, and now Donald in 2020. His father, Donald Glover Sr., died in 2018.Glover and Coel talked about a variety of topics in their interview, including current and past projects, being Black in the television industry, racial justice, and a shared passion for writing. 1281
EL CAJON, Calif. (KGTV) - A Granite Hills High School math teacher is under investigation for serious allegations of misconduct, the Grossmont Union High School District said Tuesday, the first day of the new school year.Ryan Braun was placed on paid administrative leave August 8 after the district learned of the allegations, a spokesperson said.The alleged misconduct happened outside of school hours and off-campus, according to the Grossmont Union High School District.RELATED: Granite Hills High teacher resigns amid misconduct allegationsLaw enforcement officials and the district will continue the investigation and if misconduct occurred, Braun might be dismissed, the district said. 700
EL CENTRO, Calif. -- The four Marines who died in a Marine Corps helicopter crash during a training mission in El Centro Tuesday have been identified.Military officials say Capt. Samuel A. Schultz, 28, of Huntington Valley, Pennsylvania; First Lt. Samuel D. Phillips, 27, of Pinehurst, North Carolina; Gunnery Sgt. Derik Holley, 33, of Dayton, Ohio; and Lance Cpl. Taylor J. Conrad, 24, of Baton Rouge, Louisiana, all died in the crash.According to officials, the CH-53E Stallion helicopter took off from the Strategic Expeditionary Landing Field at Marine Corps Air Ground Combat Center Twentynine Palms to conduct squadron training.RELATED: 671
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