Hasbro Ties Major Layoffs To Toys 'R' Us Closing Stores
The absence of Toys 'R' Us stores across the world isn't merely a loss for nostalgic millennials who find their memories of going to the local toy store and picking out their favorite selections fading away. It has also been hurting Hasbro quite a bit, as the toy company has found the main distributor of its toys disappeared in the blink of an eye; a problem especially dire so close to the holidays.
Indeed, Hasbro hasn't had the best year in 2018. The company has found their U.S. retail inventories has gone down 17 percent, as it is being reported by CNBC, and their shares have also dropped-- particularly since Toys 'R' Us filed for bankruptcy one year ago. As such, the company has been letting people go throughout the past year, and it seems that Toys 'R' Us's loss of business has resulted in more lost jobs for people across the United States.
Business for Hasbro has grown even more difficult as the holiday season looms ahead. As retailers struggle to figure out how they can fill the void left by Toys 'R' Us, the toy producers find themselves growing anxious in trying to figure out who can host their products in their businesses as the Christmas season comes. That said, while it has been a difficult time for Hasbro in the wake of Toys 'R' Us public death, it isn't necessarily all doom-and-gloom for the company.
Online services like Amazon have made it more convenient for buyers to get the products they desire, particularly in their busy day-to-day lifestyles, and Target and Walmart locations have certainly been necessary housing to both Hasbro and its competition. There's also Kohl's, Best Buy and J.C. Penney. Additionally, there are several independently-owned drug and retail stores which continue to host the new products Hasbro puts on shelves.
Alas, none of these locations are quite as profitable for Hasbro as Toys 'R' Us was. The toy-selling chain of stores across the world was the number one place to get Hasbro products, and it hasn't been the same for Hasbro since Toys 'R' Us closed their doors in the wake of their recent bankruptcy. With Geoffrey the Giraffe away on permanent vacation, it's apparently Target who is ultimately the number one retail source for Hasbro toys right now.
From video games to major Hollywood franchises to trademarking the signature smell of Play-Doh, Hasbro has worked hard these past few years to keep themselves stable and running, but they hit a major roadblock with the withering decay of Toys 'R' Us locations available to buyers everywhere. Things are not looking great for the company at the moment, but with the holiday season approaching, Hasbro is hoping to rebound sooner-than-later.
We'll be sure to keep you posted on Hasbro's prospects and its wavering financial state right here at CinemaBlend.
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Will is an entertainment writer based in Pittsburgh, PA. His writing can also be found in The Playlist, Cut Print Film, We Got This Covered, The Young Folks, Slate and other outlets. He also co-hosts the weekly film/TV podcast Cinemaholics with Jon Negroni and he likes to think he's a professional Garfield enthusiast.