Published On: Wed, Jan 24th, 2018

After Declaring Bankruptcy Toys ‘R’ Us Is Shuttering 180 U.S. Stores

 

Toys ‘R’ Us Inc. said on Tuesday it will close about 180 U.S. stores in the coming months, as part of a reorganization plan to emerge from one of the largest ever bankruptcies by a specialty retailer, according to a court filing.

In September, just ahead of the 2017 holiday season, the world’s largest toy chain filed for protection from its creditors, a response to years of dull results and a $5 billion of long-term debt. The announcement casting doubts over the future of its 64,000 employees and nearly 1,600 stores.

In Canada all 83 Toys ‘R’ Us stores will remain open, said president of the Canadian unit, Melanie Teed-Murch, in a letter to customers.

The closure of about 20 percent of its stores in the United States, which needs court approval, will begin in early February and continue until mid-April, Chief Executive David Brandon said in a letter on its website.

The company said it plans to reinvent its stores by converting them into co-branded Toys R Us and Babies R Us stores and websites as a way to exit bankruptcy in 2018.

Toys ‘R’ Us, which also operates the infant- and toddler-focused Babies ‘R’ Us chain, has set aside more than $400 million out of its $3.1 billion in bankruptcy loans for sprucing up stores over the next three years with more experiences and better-paid staff, Reuters reports.

 

 

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