Toys R Us to close all 800 of its U.S. stores

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From The Washington Post:

Toy store chain Toys R Us is planning to sell or close all 800 of its U.S. stores, affecting as many as 33,000 jobs as the company winds down its operations after six decades, according to a source familiar with the matter.

The news comes six months after the retailer filed for bankruptcy. The company has struggled to pay down nearly $8 billion in debt — much of it dating to a 2005 leveraged buyout — and has had trouble finding a buyer. There were reports earlier this week that Toys R Us had stopped paying its suppliers, which include the country’s largest toymakers. On Wednesday, the company announced it would close all 100 of its U.K. stores. In the United States, the company told employees closures would likely occur over time, and not all at once.

. . . .

 Toys R Us, once the country’s preeminent toy retailer, has been unable to keep up with big-box and online competitors.

. . . .

 “There is no toy business without Toys R Us,” Larian said, noting that he sold his first product to the chain in 1979. “It’s a big deal and I’m going to try to salvage as much of it as possible.”

. . . .

 Despite turnaround efforts at Toys R Us, which included adding more hands-on “play labs,” retail experts say the 60-year-old company has been unable to get customers back into its stores.

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 “The liquidation of Toys R Us is the unfortunate but inevitable conclusion of a retailer that lost its way,” Neil Saunders, managing director of the research firm GlobalData Retail, wrote in an email. “Even during recent store closeouts, Toys R Us failed to create any sense of excitement. The brand lost relevance, customers and ultimately sales.”

Link to the rest at The Washington Post and thanks to Jan for the tip.

PG notes that Toys R Us also sells childrens books.

1 thought on “Toys R Us to close all 800 of its U.S. stores”

  1. Last time I was there the selection was poor and very overpriced. In my case I was seeing what type of robotics toys/projects they had for kids of all ages, had to go online because like B&N, Toys aren’t Us just didn’t have enough floor-space to cater to everyone’s wants.

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