Toys R Us Fallout Part 2

In "Toys R Us is a Dumpster Fire," we cast shade on Hasbro Inc. ($HAS) and Mattel Inc.($MAT). And then Mattel reported numbers that indicated that we were on point. Hasbro, however, served up a solid slice of humble pie and - reminder: we don't offer investment advice - surprised to the upside, beating EPS estimates by $0.50 (despite lower revenue). In an overall bloody weak for the equity markets, the stock was up. Noting that its partner-brand business slowed in November/December, Hasbro's CEO pinned the results on disappointing Star Wars toy sales, Brexit and, wait for it...Toys R Us. Regarding Toys R Us,

• "Third, our outlook for the fourth quarter reflected a higher level of uncertainty due to the September Toys“R”Us bankruptcy. This uncertainty materialized and our business with Toys“R”Us was impacted in the quarter about as we expected. We continue to partner with Toys“R”Us to support their turnaround, while managing our risk and inventory. We estimate less than half the stores in their announced closures directly affect our initial plans, but we also expect Toys“R”Us to streamline inventory at remaining stores. Much of this impact will be felt in the first two quarters of the year. We anticipate during 2018 that we will right size our business with Toys“R”Us, while leveraging our omni-channel model to ensure product is available throughout our retailer network to meet consumer demand."

More specifically, Toys R Us closures in the UK impacted Hasbro. Goldner added,

• "We continue to be supportive of them but most importantly we continue to manage our risk and inventory as they streamline the amount of inventory they can take. And we are prepared for any eventuality." 

Query: including liquidation?