Last September, one of the most popular retailers in the country officially filed for bankruptcy. Toys “R” Us announced that they would file for Chapter 11 bankruptcy in order to get out of their debt and hopefully ensure a strong future.
When the company announced their decision to file bankruptcy, they did not give any indication of store closures. Now, over four months later, they have announced that they will be closing 182 stores nationwide.
The news was announced in a court filing on late Tuesday. The company’s same-store sales fell by 4.4% in the last quarter, and the stores specifically in the U.S. fell by 7%.
According to CNN, store closures among U.S. retailers hit a record last year, and now the popular kid’s store is following suit.
The toy store has roughly 1,600 stores around the world, with about 880 in the states. In the court filing, the company said that the reason for the closures was an increase in competition and a preference for online shopping.
CEO Dave Brandon said that the planned closures would begin early next month.
He said, “The reinvention of our brands requires that we make tough decisions about our priorities and focus…The actions we are taking are necessary to give us the best chance to emerge from our bankruptcy proceedings as a more viable and competitive company.”
Brandon said that in addition to several stores closing, many others will be converted into Toys “R” Us and Babies “R” Us outlets. The Toys “R” Us stores outside of the U.S. will be unaffected.
According to USA Today, the company said that some of the closures could potentially be avoided if they are able to negotiate better lease agreements. If all 182 stores that are intended to close go through with it, the company will be losing around 20% of their store fleet.
What do you think about this? Is there are Toys "R" Us near you? In other breaking news, a former reality TV star suddenly passed away at only 38 years old.