After announcing in January they planned to close more than 180 USA stores, Toys “R” Us is reportedly considering closing them all.
The U.S. branch of the company hoped to find a buyer or work out a debt restructuring deal, and unnamed sources are leaking to business outlets that the company will liquidate its assets.
The toy chain entered bankruptcy in September 2017 with plans to close some stores and emerge with a new business model.
There are two Toys “R” Us locations in Toledo, one on Monroe St. and another on Reynolds Rd. But the toy chain has also been sacked by heavy debt, which precipitated its bankruptcy filing last fall.
Linens ‘N Things Canada, however, was not so lucky, closing down its 40 stores in 2008 when its USA parent was in bankruptcy after failing to find a buyer.
A woman visits Toys R Us store at Times Square in NY, U.S., March 9, 2018.
Some Canadian subsidiaries of USA retailers have managed to survive their parent company’s bankruptcy, however. Toymakers, from large companies like Mattel to small companies with new products, will take a hit.
So how did Toys “R” Us get here?
In the metro-east, Toy R Us and Babies R Us are located on Commerce Lane in Fairview Heights. Toys R Us, which was founded in 1985, has more than 100 stores nationwide and over 1,500 stores worldwide across 33 countries.
“Without a dedicated toy retailer – 365 days a year – you will see growth in the industry slow”, Johnson said. Toys R Us’ sales, traffic and profit all fell far short of what it had told lenders to expect.