Toys "R" Us are liquidating all US stores
Next up on the liquidation chopping block, Toys 'R' Us. The toy retailer has decided to close down and liquidate all their United States locations. The toy retailer’s CEO David Brandon, told employees on Wednesday about the company's plan to liquidate all of its U.S. stores. The information broke when the Associated Press got access to an audio recording of the meeting. The US is home to 740 Toys 'R' Us stores, and roughly 30,000 employees will be let go as a result of the closures.
Aside from liquidating just the US stores, the recording also indicated that stores in Australia, France, Poland, Portugal, and Spain are also in line to follow suit. With store in the UK already shutting down, the remaining locations will reside in Canada, Japan, and central Europe.
According to Brandon, the next steps are to try and bundle its Canadian business with about 200 stores, and attempt to find a buyer. In addition, their US based online store will remain open in hopes of also finding a buyer.
The famous toy retailer, who provided fun to kids of all ages for several generations, has been struggling for a while. Last fall they filed for chapter 11 bankruptcy protection, and got plagued by $5 billion US of debt. With the rise of the smartphone taking over playtime, and online retailers like Amazon taking over the toy market, Toys 'R' Us just couldn’t compete. Discount store like Walmart and Target also landed some well place punches to the toy business, offering up the same product at a cheaper price point.
Toys 'R' Us is just another company in a long list that are falling victim to the ever-changing times. If retailers do not update their business practices, and adapt to how the modern-day consumer shops, we will be hearing stories like this far more frequently.