Toys "R" Us Canada granted creditor protection after U.S. parent’s bankruptcy
TORONTO — Toys “R” Us Canada sought creditor protection largely due to the financial woes of its U.S. parent company, which filed for bankruptcy, but consumers may still be wary of its Canadian stores due to the hit to the global brand’s reputation, experts say.
Retail analyst Bruce Winder says Canadian consumers may hesitate to shop at Toys “R” Us this fall, worrying about whether they will be able to access product warranties or return items in the coming months.
“What customers hear is that Toys “R” Us is in bankruptcy protection, or going bankrupt,” said Winder, who is the co-founder and partner of Retail Advisors Network.
“They won’t be able to differentiate that Canada or the U.S. is profitable.”