Toys R Us To Shut Down US Business

Toys R Us store.

Iconic toy chain, Toys R Us, may be forced to shut down its U.S. business.

Toys R US, the iconic toy store chain, announced in a Bankruptcy Court filing on Thursday that it will liquidate its assets. This means that the retailer will be forced to close down 735 U.S. stores, a move which will leave about 30 thousand people without a job.

According to the court filing, the company had initially hoped to keep 400 of its US stores open, however, it soon realized that there wasn’t any enough money to preserve that many. More so, the New Jersey-based retailer said that it has enough money left to pay its workers for “no fewer than 60 days”.

“The stark reality is that the Debtors (Toys R Us) are projected to run out of cash in the U.S. in May 2018,” the motion states.

The filing said that the retailer still hoped that 200 stores in the U.S. could be kept open in combination with its Canadian branch. While Toys R Us failed to secure a buyer in the U.S. for its business, it is still hopeful that it will find a Canadian buyer.

The decision came after the retailer told employees on Wednesday that it is planning to sell or close all of its U.S. stores ahead of a court hearing scheduled for Thursday afternoon. Toys R Us filed for bankruptcy at the end of last year, however, due to lackluster holiday sales and piling debt, the company was forced to shut down.

“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.

The closure will leave a big hole in the toy industry as hundreds of toy makers sold their products at a premium price at the chain’s U.S. stores including Barbie-maker, Mattel Inc, board game company Hasbro Inc, and Lego.

Image Source: Flickr

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