Toy R Us takes the wind out of Amazon's sales

NEWS Shares in Amazon have been hit hard by news of restructuring plans at its partner Toys R Us. The US toy giant reported a 37 per cent fall in profit - marking a fourth quarter of continued decline as restructuring charges and increased competition continued to eat into its finances. Speculation that a latest round of restructuring will see it try and alter its partnership agreement with Amazon sent the e-tailer's share price floorwards - falling almost seven per cent by mid afternoon yesterday and closing down eight per cent at $14.28. Amazon.com handles online sales for Toys R Us and the US media is rife with reports the price charged for the store front may be a subject of some discussion between the two companies. Representatives of the two organisations have reportedly already opened discussions. Investors didn't wait for confirmation, shedding Amazon stock amid fears of the repercussions this may have for the e-tailer. The toy business was not one of the largest contributing factors to Amazon's recent headline making profit, but the deal with Toys R Us is a high-profile partnership and one which brings with it some of Amazon's highest margins.