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Toys R Us auditor warns retailer’s future is precarious

Carrie LaFrenz

Toys R Us, once one of the country’s largest children’s toy and clothing retailers, is battling for survival after reporting a slump in sales and with its auditor warning that it could soon run out of money.

The company, which has become an online-only retailer after it collapsed in 2018 owing creditors about $95 million, reported first-half sales of just $3.1 million compared to $5.9 million in the same period a year earlier.

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correction

This article previously described former Funtastic chief executive Nir Pizmony as the largest investor in Toys R Us. This is incorrect.

Carrie LaFrenz is a senior journalist covering retail/consumer goods. She previously covered healthcare/biotech. Carrie has won multiple awards for her journalism including financial journalist of the year from The National Press Club. Connect with Carrie on Twitter. Email Carrie at carrie.lafrenz@afr.com

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    Original URL: https://www.afr.com/companies/retail/toys-r-us-auditor-warns-retailer-s-future-is-precarious-20250324-p5lm18