The company has informed its employees that it will liquidate or close/sell all stores - a must-read article for the "we need a toy store in Croton" folks---see the article here
4/2/18 update; shuts down website http://www.businessinsider.com/toys-r-us-website-shut-down-2018-3
People feeling sad over the demise of Toys-r-Us should remember that the company was built not only on destroying local toy stores but also destroying local economies.ReplyDelete
In addition to the sales tax exemption for online purchases, Toys-r-Us attempted to get an exemption from income tax on sales in brick-and-mortar stores by use of a holding company for the Geoffrey trademark.
Toys-r-Us pioneered the tax dodge (politely called "transfer pricing") known as "Geoffrey" in which they set up a separate company to "license" the intellectual property to the local stores, which paid money to the affiliate IP company in a low-tax state. Some states fought this argument (such as SC and Mass).
Later this year, the US Supreme Court will issue a decision which may finally eliminate the online sales tax exemption which has existed since the internet began (South Dakota v. Wayfair).
Toys-r-Us did create a lot of economic benefit, and gave stability to the toy manufacturing industry. However we should not overlook the economic damage it created.
And all the people in Croton who keep whining about the lack of a local toy store like the trendy stores they had in Park Slope might try and remember that when Croton had such a store, Croton residents went in there to get ideas but then went home and bought online to get a cheaper price and no sales tax.
Croton has had two toy stores that are closed.If new residents truly believe in their dreams of toy stores, cocktail lounges and Whole Foods because after all, it's "different NOW", just look at the comments on some of the facebook pages, then they should put their money where their mouths are and open the stores they want. I somehow think the mortgage and SUV payments will take precedence though.Delete