According to a report from the Washington Post, Toys R Us will be closing or selling all of its 800+ remaining stores in the US, signaling an end of an era for the famous toys store that many of us remember. News of Toys R Us closing was announced to workers today by CEO David Brandon ahead of a bankruptcy court hearing on March 15th.
In a conference call with staff, Brandon blamed vendors and customers who failed to show support for Toys R Us during the holiday season, which tends to be the busiest and most lucrative time of the year for any company. He said that they “will all live to regret what’s happening here.”
While Toys R Us has announced the closure or selling of stores in the US, it’s likely these stores won’t be the only ones to be affected. The company stores in France, Spain, Poland and Australia will also likely be liquidated. The company is still looking to sell Toys R Us in Canada, Central Europe and Asia, if they were to find a buyer.
The company has been a sinking ship for a while now. The company filed for bankruptcy last September where we learned they had more than $5 billion in debt. Followed by lackluster holiday sales that Brandon reportedly described as “no short of devastating,” and the company missed its usual $600 million annual earnings by more than half. Needless to say, moves to close down its stores makes sense as the company continues to struggle to stay afloat in markets dominated by Amazon and other retailers.