Toys ‘R’ Us Inc. told employees Wednesday the struggling big-box retailer will sell or close all its U.S. stores, a collapse that threatens up to 33,000 Americans jobs in the coming months.
The 70-year-old chain, which filed for bankruptcy protection in September, has more than 700 remaining U.S. locations, including Babies ‘R’ Us stores. It would be one of the biggest retail liquidations since The Sports Authority filed for bankruptcy in 2016 with 14,500 workers and closed more than 460 stores.
Chief Executive David Brandon delivered the company’s fate to workers at its Wayne, N.J., headquarters. The company plans to file liquidation papers Wednesday evening in advance of a bankruptcy court hearing on Thursday.
“I have always believed that this brand and this business should exist in the U.S.,” Brandon said on a conference call with staff, adding that he guarantees that vendors who failed to support the retailer during the holidays and customers who shopped elsewhere will miss the retailer. They “will all live to regret what’s happening here,” Brandon said.
An expanded version of this report appears on WSJ.com.
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10 comments:
Earlier this week, since I knew this was imminent, I stopped in the Salisbury store to get some things before they closed. I mentioned it to the salesperson, and she didn't have a clue. She was told her store wasn't on the chopping block. Seriously! Her manager was either ignorant or rude for not giving the employees a heads up.
Adapt or die. Ask sears and Kmart.
Walmart gets it and will soon be the next amazon.
The highest prices of anyplace I know, No Wonder the are going under. Over priced can't shop for my grandson there. Shame
When I ride by the Salisbury store (on a daily basis), I often see several employees smoking outside. There is hardly ever any cars in the parking lot, and I found that has been the case over a long period of time, even during the holiday season. My kids are all grown now, but I did go in the store last year to shop for a grandchild. Everything was ridiculously overpriced, compared to other stores and online. I've seen business articles on their demise that wondered where toy shoppers were going to go, and where toy manufacturers are going to find an outlet for their products when Toys R Us is gone. There's nothing to wonder about. They've all already found other places to shop, and to sell their goods. It's the reason for Toys R Us's death. Toys R Us was unable to compete, and continued to raise their prices to cover their loses until they went out of business. Empty parking lots at Christmastime is always an indicator of where a business is headed.
It is truly a sign of the time. on line purchases have killed the big box stores. used to love going in to buy the kids toys. That time has also passed.
So this means they are going to raise their already inflated prices even more and call it a "liquidation everything must go store closing sale" kinda like Gander Mountain and Kmart have done. Funny do they think we are all idiots.
Read the article. Bunch of sour grapes from Toy R Us. The reason people like me stopped shopping there is because of the outrageous prices they charge for games and toys. Last time I was there, the sales people were rude unhelpful.
I can find what I want cheaper online at either Amazon or Walmart. I even order online at Bestbuy and pickup at the store at the pickup kios. Very convenient and the prices are reasonable. They are out of business because they were unwilling to change with the times. Goodbye! You will not be missed!
" Funny do they think we are all idiots."
No, just enough of us to make that last sales push profitable.
It's too bad that so many people only order merchandise online. I guess they don't have problems with delivery trucks driving over their yard and leaving boxes out where they can be seen by everyone driving by so they can be stolen. And it's a hassle if you have to return something, also.
I stopped shopping there due to the very rude and crass individuals - it just wasn’t worth it - yet another area business to bite the dust and fail....
Just a matter of time before we lose Sears and Macy's. Just drive by on a week day and you will see hardly no one in the parking lot.
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