Toys R Us closing stores
Retailer announces cuts as it prepares to exit bankruptcy.
The retailer will shut as many as 182 sites, including 14 in the Southland, as it looks to exit bankruptcy.
Toys R Us Inc. will close 14 stores in Southern California as the toy retailer looks to emerge from bankruptcy proceedings and better compete with lower-priced retailers.
The Wayne, N.J., company said it plans to close as many as 182 stores nationwide, which includes both Toys R Us and Babies R Us locations, including 27 total in California, pending court approval.
The majority of the closures are expected to happen in mid-April.
“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 that will provide the level of service and experience you should expect from a market leader,” Dave Brandon, Toys R Us’ chief executive, said in a blog post Tuesday night.
The company filed for Chapter 11 bankruptcy protection in September.
Although its store numbers have been shrinking, Toys R Us still sells about 20% of the toys bought in the U.S., said Jeffries analyst Stephanie Wissink.
Competitive pressures will force the company to take a close look at all of its stores, and it probably will shut more in the next year or two, Wissink said.
Analysts have said that to compete with big-box chains such as Wal-Mart Stores Inc. and Target Corp. and with e-commerce giant Amazon.com Inc. — which offer a wide selection at lower prices — Toys R Us needs to improve its store experience and its website, and must have well-trained employees who are knowledgeable about the products.
Brandon said in the blog post that the company recently relaunched its pricematch program and would take “additional steps to ensure that we provide greater overall value” through promotions, an improved loyalty program and more personalized modes of customer communication.
Toys R Us said it also plans to convert about a dozen locations into cobranded Toys R Us and Babies R Us stores.
The company’s struggles have rippled outward, hurting its suppliers. Rumors continue to swirl that Mattel Inc. and Hasbro Inc., the nation’s largest toy makers, will merge.
Toys R Us operates 881 Toys R Us and Babies R Us stores nationwide, including in Puerto Rico and Guam.
The Los Angeles County stores slated to be closed are in City of Industry, Santa Clarita, Torrance and West Covina. The other California stores slated for closure are in Brea, Brentwood, Corona, Emeryville, Fairfield, Folsom, Fresno, Indio, Pinole, Pittsburg, Riverside, San Diego (two stores), San Jose (two stores), San Rafael, Santa Ana, Simi Valley, Stockton, Union City, Vista, Westminster and Yuba City.