3 stores closing
Toys R Us reduces S. Florida presence.
Say goodbye to Toys R Us stores in Coral Springs and Royal Palm Beach, and to a Babies R Us in Boca Raton.
The three stores are expected to close by mid-April, according to a U.S. Bankruptcy Court filing on Tuesday, in the Eastern District of Virginia. The closures are part of the troubled toy store’s bankruptcy reorganization plan, which could close up to 182 stores around the country.
About 25 people work in each store, according to Toys R Us spokesman Joseph Contrino, who added that those displaced will be relocated to another store or given severance pay.
Some stores may be spared if Toys R Us can negotiate more favorable lease terms, according to the court filing.
Local closures include the Babies R Us at West Boca Square, 21697 State Road 7 in Boca Raton; and Toys R Us stores at 450 State Road 7 in Royal Palm Beach; and 6001 W. Sample Road in Coral Springs.
The Wayne, N.J.-based company operated 881 U.S. stores, according to its last quarterly report in October. There are 10 Toys R Us stores in South Florida.
Toys R Us said it has faced challenges both from traditional brickand-mortar stores and online retailers. “These factors have left [Toys R Us] with a significant number of stores operating at suboptimal performance levels,” the filing says.
Several other retail chains have announced recent closures including Macy’s, which is closing its downtown Miami store, and Sears, which is closing its Boca Raton store.
In a message to customers posted on the Toys R Us website, company chairman and CEO Dave Brandon says the retail chain’s restructuring, which began last fall, would involve combining some Toys R Us and Babies R Us locations.
Toys R Us filed for Chapter 11 bankruptcy reorganization, which allows a company to pay creditors over time while restructuring, in September.
mpounds@sunsentinel .com, 561-243-6650, Twitter @marciabiz