The planned closures, which need court approval, are expected to begin early next month and be mostly completed by the end of April, Toys “R” Us CEO Dave Brandon said in a message to customers posted on the company’s website. The filing Tuesday by the company’s lawyers said the decision to shut so many stores was prompted by increased competition and a shift by customers toward online shopping. Over nearly seven decades in business, Toys “R” Us has built up 1,600 stores around the world. The troubled retailer, which declared bankruptcy in September, is looking to close down as many as 182 outlets across the country, according to a court filing late Tuesday. You can sign up to receive it directly here.Toys “R” Us is planning to shutter a fifth of its U.S. The company has almost 65,000 employees globally, according to a company press release in February.ĭW's editors send out a selection of the day's hard news and quality feature journalism. Toyr 'R' Us founder Charles Lazarus started his business in 1948 in Washington, D.C., amid the postwar US economic boom. "The Company's international operations in Australia, France, Poland, Portugal and Spain are considering their options in light of this announcement," the statement said. Toys 'R' Us employs 3,200 people at 100 stores in the UK.Īccording to the Thursday statement, the company is also pursuing a "going concern" reorganization and sale process for its Canadian and international operations in Asia and Central Europe, including Germany, Austria and Switzerland. In February, the company's British unit announced plans for an "orderly wind-down" of its store portfolio. Read more: OTTO - making the move from mail order to online In a last-ditch attempt to save the company, Toys 'R' Us is "in discussions with certain interested parties" regarding a transaction that could see 200 of the top-performing US stores combined with its Canadian operations, Brandon said.īut while discussions take place, the company has sought court approval for the liquidation of its US stores with the right to recall any stores included in the proposed Canadian transaction. Similar to other stores, Toys 'R' Us has suffered due to competition from online retailers such as Amazon. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video 'Game over' for British Toys 'R' Us stores The closure of the 70-year-old retailer in the US will affect some 30,000 employees. Toys 'R' Us was taken private, with a view to take it back to the stock market after a restructuring period. The company had huge debts as the result of a $6.6-billion (€5.3 billion) leveraged buyout in 2005 by a consortium that included the KKR Group and Bain Capital. Toys 'R' Us filed for bankruptcy protection - called Chapter 11 in the US - in September and was already in the process of closing one-fifth of its stores in an attempt to save the business. Read more: Classic toys in children's rooms throughout the world "I am very disappointed with the result, but we no longer have the financial support to continue the company's US operations," he added. "This is a profoundly sad day for us as well as the millions of kids and families who we have served for the past 70 years," CEO Dave Brandon said in a statement. Toys 'R' Us on Thursday announced it would close all its US stores after being unable find a buyer or reach a deal to restructure billions of dollars in debt.
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