Description: Last week this blog featured a story on how Blackberry had turned a profit by transforming itself from a handset company to a software vendor with a valuable automobile industry component. This week, the Washington Post featured a story on how Toys R Us – a company that had shuttered its US retail operations – may not be down for the count. The plan: the hedge fund that owns Toys R Us is examining the possibility of restructuring as a branding company.
Date: October 3, 2018
1) Toys R Us still operates traditional bricks and mortar stores in Canada. Were you aware that the US version had been shut down?
2) Do you think the move to create a branding company has potential?
3) The article notes that the owners have kept the names Toys R Us, Babies R Us, and the company mascot. What category might these assets be classified as on the balance sheet? Hint: see chapter 10 of Wiley’s Financial Accounting: Tools for Business Decision-Making.