Toys R Us reportedly closing all US and UK stores

toys r us-closing-us-uk-stores

Toys R Us will close its doors after being in the business for 70 years. Toy Retailer Toys R Us were famous for Action toys, Barbie dolls, playhouses, video games and birthday presents. The company mascot, Geoffrey the Giraffe won’t be there to invite you any more into the giant playhouses. They were predominant in the United States and as well as other markets. The company fell into the demise when other retailers like Walmart, Target offered at a much cheaper price. The e-commerce giant, Amazon‘s online presence sped up the process. Toys ‘R’ Us filed for bankruptcy in the early September, hoping to reduce debt and reinvest in its stores.

According to court documents filed early Thursday, Toys ‘R’ Us will begin closing the remaining 735 stores in the United States and also includes all Babies R Us locations. This will affect as many as 31,000 workers in the United States. The company did the same in the UK in January and also tried to shut down some of the stores in the US. They have tried to sell all the stores and have failed after several meeting with the interested parties. Furthermore, the company also likely liquidating their assets in Australia, France, Spain, and Poland. However, the company could still be operational in the US by selling off the Canadian stores and along with 25 percent of the most profitable location in the US. The spokesperson has said that the closure will happen in a sequential manner and not all at once.

The company has been struggling to pay billions of dollars in debts. They also failed to pay the suppliers and other distributors. They were late to the e-commerce market and as well as late in adopting new products. Instead of investing in apps like Pokemon Go, they partnered with in-house augmented reality game. The company also failed to provide big offer discounts like the other retailers.

Source | Featured Image: PYMNTS

Leave a Reply

Your email address will not be published. Required fields are marked *