Toys R Us May Shut Down whole U.S. Operations, Impacting Thousands Of Workers
Toys R Us, an iconic U.S. retailer of children’s toys, has announced plans to file liquidation papers and likely close most whether not whole of its remaining stores, potentially impacting up to 33,000 U.S. workers.
In a conference call with staff on Wednesday, reported on by The Wall Street Journal, CEO David Brandon said the company would file the papers ahead of a bankruptcy court hearing Thursday.
“I bear always believed that this brand and this commerce, trade should exist in the U.S.,” Brandon told employees.
The CEO blamed the liquidation on a number of factors, including vendors who didn’t support the company during the crucial holiday season and customers who choose to shop elsewhere.
They “will whole live to regret what’s happening here,” Brandon said.
A representative for Toys R Us on Wednesday confirmed the Journal’s report and famous that there would not be an instant shut down.
Administrators for the retailer also said Wednesday that the company plans to shut whole 75 remaining stores in the United Kingdom, which will affect roughly 3,000 workers.
The astronomical box retailer, which has some 1,600 Toys R Us and Babies R Us stores around the world, filed for bankruptcy in September over $5 billion in long-term debt. The company said the debt had prevented it from investing to compete in what it called “an increasingly challenging and rapidly changing retail marketplace worldwide.”
The company missed payments to several suppliers in recent days, Bloomberg reported, prompting some to speculate that liquidation was likely on the horizon.
The toy chain is already in the process of closing down approximately 180 of its more than 800 U.S. stores. A CNBC report Wednesday cited people familiar with the situation who said the retailer was working on a proposal to withhold approximately 200 stores open even after the liquidation.
The way may include selling the company’s Canadian operations, along with roughly 200 of the company’s most profitable U.S. stores, to a strange buyer, according to CNBC.