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Toys 'r' Us Could Liquidate And Close All 800 Of Its Us Stores, Next Week

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Meandering

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Bankrupt Toys 'R' Us is preparing to liquidate its American stores and operations after failing in its efforts to find a buyer or a way to restructure its debt deal.

Although its still being described as a fluid situation, shuttering the US division of the famed toy seller is said to be increasingly likely, because hopes are fading that the company will be able to find a buyer or that money lenders will agree to debt restructuring terms, sources told Bloomberg.

Read more: http://www.dailymail.co.uk/news/art...-prepares-liquidate-stores.html#ixzz59MIhWdEl

:whistle:

Heads up on those vacancy rates.

.
 

PL1957

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Illinois
Bankrupt Toys 'R' Us is preparing to liquidate its American stores and operations after failing in its efforts to find a buyer or a way to restructure its debt deal.

Although its still being described as a fluid situation, shuttering the US division of the famed toy seller is said to be increasingly likely, because hopes are fading that the company will be able to find a buyer or that money lenders will agree to debt restructuring terms, sources told Bloomberg.

Read more: http://www.dailymail.co.uk/news/art...-prepares-liquidate-stores.html#ixzz59MIhWdEl

:whistle:

Heads up on those vacancy rates.

.
Most of these are free standing stores, so occupancy is all or nothing anyway. TRU's issues have been long known, so I don't think this is a surprise to anyone.
 

Terrel L. Shields

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Few retailers can compete with tax free Amazon. Walmart is closest. I bought a floor lamp w/ side reading lamp from Wally World tonight for $14. I found near identical for $26 at Lowes, and on line $23. Not a sale price or close out.

But eventually the malls will have to drop rents, and states / counties need to lower property taxes, business taxes, and income taxes to save their sales tax revenues. Otherwise almost any marginal retailer will fold. Dick's, besides being marginal stores, shot itself in the foot over firearms. They might as well stop selling guns altogether. Academy might survive as sports and clothing store, but hunting sales will plunge. Five years from now neither will be here I predict. Amazon has the momentum. Walmart has the footprint. Maybe it gets like Demolition Man.

 

Michael S

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New Mexico
I know of one locally that's part of a power center and has a lot of options left on a below-market lease per an offering memorandum when they put the center up for sale a year or two ago. Someone will buy out that leasehold position and make a nice spread. I suspect most of their store will be re-leased pretty soon since they've typically got pretty good locations.

I've got a lot of young kids and though we don't shop there very often, it's still got a far greater selection than you'll ever find at Walmart, Target, or an independent toy store. I think I read an article recently that said Toy's "R" Us represents something like 25% of the sales for some of the larger brands (Mattel, etc.).


Amazon is starting to charge sales tax in a lot of places. I still can't figure it out sometimes because some orders we'll pay sales tax and some we won't. When we do it's never the full 7.5% charged locally (going up soon to 7.875%, thanks city council). I sell some things on Amazon on the side and don't collect any sales tax, though Amazon is starting to collect and remit it on my behalf in Washington State. I believe they'll start doing the same in Pennsylvania. The idea of millions of third-party sellers collecting and filing sales tax in cities and states all over the country is completely unworkable. Amazon controls everything else but has tried to shift this one item on to third-party sellers, who obviously are not going to comply because they rightly know that the odds are no city or state will come after them for $30 in unpaid sales tax. Now, if you're selling millions on Amazon you can bet that California will come after you for their thousands or tens of thousands of dollars of sales tax. That's a pretty small group of sellers though.
 

AMF13

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California
Lots of kids will be unhappy. I rarely go there, but it's sad to see old companies like them fold.
Apparently a few Billion here and a few Billion there, and soon you are talking serious debt. :leeann:
 

Meandering

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I know of one locally that's part of a power center and has a lot of options left on a below-market lease per an offering memorandum when they put the center up for sale a year or two ago. Someone will buy out that leasehold position and make a nice spread. I suspect most of their store will be re-leased pretty soon since they've typically got pretty good locations.

I've got a lot of young kids and though we don't shop there very often, it's still got a far greater selection than you'll ever find at Walmart, Target, or an independent toy store. I think I read an article recently that said Toy's "R" Us represents something like 25% of the sales for some of the larger brands (Mattel, etc.).


Amazon is starting to charge sales tax in a lot of places. I still can't figure it out sometimes because some orders we'll pay sales tax and some we won't. When we do it's never the full 7.5% charged locally (going up soon to 7.875%, thanks city council). I sell some things on Amazon on the side and don't collect any sales tax, though Amazon is starting to collect and remit it on my behalf in Washington State. I believe they'll start doing the same in Pennsylvania. The idea of millions of third-party sellers collecting and filing sales tax in cities and states all over the country is completely unworkable. Amazon controls everything else but has tried to shift this one item on to third-party sellers, who obviously are not going to comply because they rightly know that the odds are no city or state will come after them for $30 in unpaid sales tax. Now, if you're selling millions on Amazon you can bet that California will come after you for their thousands or tens of thousands of dollars of sales tax. That's a pretty small group of sellers though.

amazon sales taxes.png

https://www.cnbc.com/2018/03/02/ama...-sales-tax-for-shipments-to-pennsylvania.html

Other sellers using Amazon as a marketing machine might be charging you sales taxes if they are located in your state, even though Amazon may not be subject to your state sales taxes.

Toys R Us might be free standing, but generally, round here, they are in or anchoring other strip mall centers. Although there are a few out on their own in some commercial districts, it's still not great to see big empty stores. On the plus side, Ollie's took over one of the two local K marts that went out of business here, and Pet Smart took over Boarder's Books. But all of these changes should start to weight heavily on rents and vacancy rates.

But I expect, once the supreme court hears some arguments, that more states will jump on the missing sales tax revenuer which again, will cause landlords to look more closely at rents.

Amazon is being forced to adapt to a new legislative clampdown on online sellers as more retail transactions move to the internet and states seek to recoup tax revenue. Since 1992, sales over the internet have not been subject to tax unless the merchant has a physical presence in the state of the customer. The Government Accountability Office estimated in a report late last year that state and local governments could have gained up to $13 billion in 2017 from taxes on remote sales.

Whether more states follow suit may be in the hands of the U.S. Supreme Court. Starting in April, the high court is scheduled to hear arguments from officials in South Dakota who contend that the 1992 ruling is no longer effective given the changing state of the economy.


https://www.cnbc.com/2018/03/02/ama...-sales-tax-for-shipments-to-pennsylvania.html

..
 

Carnivore

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North Carolina
If I buy something on line I am charged a sales tax. States such as Arkansas, California, Connecticut, Georgia, Illinois, Maine, Minnesota, New York, North Carolina, Rhode Island, and Vermont have each passed so-called "Amazon tax" laws that require retailers to collect sales tax even if they don't own property or have employees in a given state

If I recall I don't pay any local sales tax on internet purchases.
 

Meandering

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Pennsylvania
Perhaps you should write the editor at CNBC and make them correct their article then.
 

Michael S

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Mar 18, 2009
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New Mexico
If I buy something on line I am charged a sales tax. States such as Arkansas, California, Connecticut, Georgia, Illinois, Maine, Minnesota, New York, North Carolina, Rhode Island, and Vermont have each passed so-called "Amazon tax" laws that require retailers to collect sales tax even if they don't own property or have employees in a given state

If I recall I don't pay any local sales tax on internet purchases.


Good luck for those states in trying to enforce laws on an out-of-state seller with no nexus in the state. I suspect they will go after someone who has deep enough pockets to take them to court and the law will probably get shot down. As of now the law of the land is that you have to have a nexus in the state in order for them to force you to collect sales tax. That means either a physical location, employees, or inventory. If you sell on Amazon and ship products to their warehouse for fulfillment Amazon may end up storing your inventory all over the country, creating a nexus in as many as 20 states. For someone like me who just does it on the side with a few sales here and there I'm not going to try and collect and remit sales tax in 20 different states and possibly hundreds of local jurisdictions. Simply finding out which state your inventory is stored in isn't easy. If I send in a box of widgets to a warehouse in Texas, Amazon will then redistribute it all over the country so a buyer in New York will get it from a warehouse in New Jersey the next day, rather than Amazon having to pay extra to ship it by air from Texas.

It's sort of like an appraisal board in one of those states trying to sanction someone in another state who does a desktop review in their state. If your license is in Arizona what is a board in Michigan going to do to you? They can't take away your license in another state. Same with trying to collect sales tax on an out-of-state business who has never done anything but mail a package to your state.
 
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