FIRST AIRED: September 19, 2017

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Transcript

00:00:01
>> In the latest sign of distress that has ripped through traditional brick and mortar retailers, Toys R Us filing for bankruptcy after 60 years as one of the most venerable names in retail. Reuters Jessica DiNapoli says Toys R Us came under intense pressure from suppliers.>> This bankruptcy of Toys R Us has been very fast moving in part because vendors have clamp down and are requiring tighter payment terms from Toys R Us, which in turn is causing a cash drain on Toys R Us and precipitating the bankruptcy filing.
00:00:33
>> Those vendors spooked after reports emerged that the privately held toy retailer was working with an investment bank to help address it's $5 billion debt load, $400 million of which comes due next year. The move by Toys R Us to file for bankruptcy, coming at a time when more consumers are turning to Amazon.
00:00:52
The next decision for the giant toy seller, whether to operate while in bankruptcy or liquidate. Sources are not completely convinced that Toys R Us will not liquidate, they have not decided to liquidate. There is no indication that that's what they're doing. But it is a fear in the marketplace as other sellers of toys have gained dominance like Amazon and Walmart.
00:01:17
>> Investors Monday started to brace for a major disruption to the entire toy business sending shares of US toy companies Mattel and Hasbro lower.