Toys R Us founder dies at 94; closeout sales delayed a day
Toys R Us called a timeout Thursday to its plan to begin liquidation sales at hundreds of stores, saying “unforeseen circumstances” had caused the delay.
Shoppers throughout the country headed for Toys R Us and Babies R Us stores in the morning expecting to see markdowns on dolls, games, baby supplies and all other merchandise. Instead, they were greeted by signs alerting them that the sales had been postponed, and in some cases apologizing for the confusion.
Toys R Us is now saying it hopes to start the closeout sale on Friday.
Adding to the sadness of the chain’s expected demise, Toys R Us founder Charles Lazarus has died, the company confirmed Thursday. The 94-year-old had created what would become one of the nation’s best-known superstore chains in 1948.
Toys R Us began going-out-of-business sales at 144 stores in early February.
The new round of liquidation sales was expected to take place at hundreds of additional U.S. stores. The company has announced plans to sell or close all of its U.S. operations.
Delay and uncertainty about when sales will begin could hurt Toys R Us’ efforts to generate maximum returns for creditors with the liquidation sales. In court testimony Tuesday, Toys R Us liquidation adviser Joseph Malfitano said creating a sense of urgency among shoppers, and making them think the sales will not last long, is crucial to a successful liquidation.
Instead, eager shoppers were turned away Thursday with little information on when the sales would begin.
“It’s inconvenient and disappointing,” said Janine Gonzalez, of Palm City, Fla., one of the shoppers who filled the parking lot at the Toys R Us store in nearby Jensen Beach.
Another shopper at the same store, Justine Allegrezza, said she came to the store Thursday precisely because she had seen signs there previously that the liquidation would begin March 22.
“I went there on a mission and was very surprised when I saw the sign stating no sales starting today,” she said.
Stores around the country had signs posted at the registers saying no personal checks accepted for payment after March 21 and no returns after that date. Store employees were telling shoppers Thursday that they would accept returns until the liquidation officially begins.
Toys R Us delayed the start of liquidation sales until Friday because attorneys were still preparing a court filing for the bankruptcy judge to sign off on the process, said a person with knowledge of the company’s deliberations.