Reports indicate that the chief executive officer of Toys R Us, David Brandon, as well as other C-suite executives are leaving the troubled company early. Brandon provoked a bankruptcy trustee’s ire for receiving a retention bonus amounting to approximately $2.8 million a few days prior to the toy retailer filing for Chapter 11. The chief executive officer is expected to exit mid this month and only around 300 employees will stay on with the retailer beyond mid this month. Toys R Us is expected to officially wind down in July.
Other C-suite executives who are following Brandon through the exit door include Michael Short, the chief executive officer, and James Young, the general counsel. Charles Knight, the controller, is also expected to depart before July. Each of the departing C-suite executives are expected to keep the outlays from the bonus pool amounting to $8.2 million which was issued last year in September.
Key sales channel
Recently the chief executive officer of MGA Entertainment, a maker of toys, indicated that he is interested in acquiring 274 stores belonging to Toys R US out of bankruptcy. This is because Toys R Us is an important sales channel various toymakers that also include Mattel and Hasbro besides MGA. In the first quarter Hasbro disclosed that sales had fallen by 16% and this was primarily attributed to the bankruptcy of Toys R Us. MGA Entertainment on the other hand has disclosed that the toy retailer was on average responsible for around 20% of sales.
This comes in the wake of the toy retailer moving to auction off some of the domain names it owns as well as Geoffrey the Giraffe, its famous mascot. Some of the domain names that Toys R Us is selling are adult-oriented and were supposedly acquired to prevent them from being hijacked by others and being put to use and thus harming the brand.
Some of the domain names include kinkytoysrus.com and adult-toys-r-us.com. Other domain names that are owned by Toys R Us and which are up for sale include ihatetoysrus.com, toysrussucks.com, lodges-r-us.com, recipes-r-us.com, bistros-r-us.com, cigars-r-us.com and burgers-r-us.com.
“They just went crazy. I’m sure they were laughing and drinking Red Bull and then just came up with every iteration they could,” the chief executive officer of consulting firm Retail Doctor and brand specialist, Bob Phibbs, said.
According to Phibbs the significant number of domain names that the toy retailer had registered was a testament to the pull of the Toys R Us brand.