INTERNATIONAL RETAIL REELS UNDER BANKRUPTCY, TOP-LEVEL EXIT PRESSURES
A sad day for kids as one of the world’s best-known toy store chain, Toys ‘R’ Us announced plans to shut down more than 700 stores in USA, and Canada
Toys ‘R’ Us said in a US Bankruptcy Court filing that it must liquidate, a move that would close 735 stores, leave 33,000 people without jobs and wrap up a 70-year run for a once-beloved holiday shopping spot. With shoppers flocking to online platforms like amazon. com Inc and children choosing electronic gadgets over toys, Toys ‘R’ Us has struggled to service debt from a US $6.6 billion leveraged buyout by private equity firms KKR & Co LP and Bain Capital and real estate investor Vornado Realty Trust in 2005.
In a statement to the press,
Dave Brandon, CEO, Toys ‘R’ Us said, “Going-out-of-business sales would begin at all stores immediately. Gift cards can be redeemed for the next 30 days. Employees will be paid for no fewer than 60 days. 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.” The closure in coming months is a blow to generations of consumers and hundreds of toy makers that sold products at the chain, including Barbie maker Mattel Inc, board game company Hasbro Inc and other large vendors such as Lego. Toys ‘R’ Us is also likely to liquidate in France, Spain, Poland and Australia, Brandon said, according to The Wall Street Journal. It quoted Brandon as adding that the retailer also planned to sell operations in Canada, Central Europe and Asia.