Toys R Us is shutting stores across the U.S.
The chain proposes closing its Katy Mills Mall location.
Toys R Us plans to shutter as many as 182 stores nationally, including one in Katy.
The Wayne, N.J.-based retailer, which filed for Chapter 11 bankruptcy in September, released a list of the stores targeted for closure as part of a court filing late Tuesday. These stores were chosen after a “top-to-bottom assessment” of the business, the company said.
The list, which spans 41 states and Puerto Rico, includes nine locations in Texas: Allen, Dallas, El Paso, Fort Worth, Hurst, Irving, Katy, Lewisville and Robstown. The potential Houston-area closure will be the Toys R Us at Katy Mills Mall, 25024 Katy Mills Drive.
The list of closures is subject to change, pending court approval. If the list is approved, the closures are expected to start in early February with the majority of stores shuttering by mid-April.
The closures would affect about a fifth of all Toys R Us locations nationally, and could impact thousands of workers. The number of store employees varies by location, but averages about 25 full- and part-time employees per store.
Some employees will be relocated to other stores. Others will be given severance packages, a spokesman said in an email.
The closures come as Toys R Us is restructuring and reinventing its brand amid mounting competition from e-commerce companies. The company, which had a disappointing third quarter, with same-store sales falling 4.5 percent, has yet to release its fourth-quarter earnings. On Tuesday, it acknowledged “operational missteps” during the holiday season.
The retailer plans to convert a number of stores into co-branded Toys R Us and Babies R Us stores.