It seems like Toys R Us is going to exit the US market permanently. A new Wall Street Journal report disclosed that the company had informed its employees about it either selling or shutting down all of its US stores in the months to come.
For now, Toys “R” Us Inc. has kept only its employees in the know about this. There hasn’t been any official statement or any social media posts on the company pages or any other forum.
Unfortunately, the downfall didn’t come as a shock to market watchers because Toys “R” Us has found difficult to get going in last few years. In September 2017, the company filed for bankruptcy after several months of speculation. At present, there are barely 700 stores operating in the U.S. (including the Babies “R” Us locations). The shutdown will be the largest retail closure since 2016 when The Sport Authority went out after bankruptcy forced them to shut down over 460 stores and lay off 14,500 employees.
According to reports, Chief Executive, David Brandon disclosed the company’s fate to workers at their New Jersey headquarters. Liquidation paperwork will be done on Wednesday evening prior to the bankruptcy court hearing on Thursday.
“I have always believed that this brand and this business should exist in the U.S.,” Mr. Brandon stated during a conference call. He further emphasized that the brand is bound to be missed by suppliers and loyal customers. He said they “will all live to regret what’s happening here.”
As stated above, it wasn’t a surprise for market watchers, but, consumers are shocked to see these reports emerge. Earlier in March, Toys “R” Us had assured its customers on social media about the stores remaining open.
“To our loyal customers: We’ve seen an amazing outpouring of love and support in recent days, and we truly appreciate it. Our stores are open for business, ready to bring joy to children wherever we can, and to help new and expecting parents navigate raising a family,” the company had tweeted.
The reassuring tweet came on March 9. Still, Toys “R” Us stunned fans overseas by announcing that it was shutting down all its UK stores. Earlier this week, BBC had reported about the retailer not being able to sell its 100 UK stores, forcing them to be shut within the next six weeks.
