Toy sales ‘R'n't Us, says Geoff
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Toy sales ‘R'n't Us, says Geoff

Investors ask tough questions these days about companies' ability to honour their commitments. After all, no-one wants to fall victim to the next corporate scandal. But Toys “R” Us shareholders and bondholders are safe, aren't they? Surely official “spokesanimal” Geoffrey the Giraffe and chums won't let them down.

But there's a problem. The toys aren't making money and the business might be sold. Second-quarter results showed  sales down 3.9% over the same period last year, with an operating loss of $192 million on the quarter.

But never mind, we're sure investors will all draw comfort from the comment of chairman and CEO John Eyler: “We pursue our business strategies with a commitment to fulfil our obligations to all of our constituents, including our equity and debt holders, vendors, associates and guests.”

Investors should take note that at the company's Times Square flagship Toys “R” Us offers some serious goodies. Even if it failed to repay its investors in cash, they could always ask for the 60-foot Ferris wheel, the 34-foot animated Tyrannosaurus rex or the life-sized Barbie doll house instead.

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