Today, Toys R' Us announced that it's seeking bankruptcy court approval to start closing its 830 U.S. stores and liquidating their inventory.
KATY MAGAZINE NEWS
March 15, 2018
by Jennifer Skelton
The announcement came a day after employees leaked to the press that they were part of a conference call in which they were told that stores would be closing in the next few months. Toys R' Us stated that they will run out of cash in May.
There's still some hope, however, that 200 of Toys R' Us top-performing stores could remain as they are seeking a buyer for them, along with its Canadian stores. . Toys R Us' in other countries are beginning liquidation as well. As of right now, it is uncertain that if a buyer is found, what affect this would have on two Katy stores.
Toys R Us' Statement
Toys "R" Us Chairman and Chief Executive Officer Dave Brandon said in a statement, "I am very disappointed with the result, but we no longer have the financial support to continue the Company's U.S. operations."
" … This is a profoundly sad day for us as well as the millions of kids and families who we have served for the past 70 years," he continued.
Liquidating Toys "R" Us in the U.S. will lead to the largest layoff in the retail sector since at least 2015, and would be the 12th largest in history.
Although some have blamed the demise on online retailers such as Amazon, experts in the field all agree that the closing was years in the making as the company has been lagged by billions of dollars in debt.
This mismanagement seems to be confirmed by the fact that the toy retailer won approval to pay $16 million in bonuses to 17 top executives, with the only condition being that it hit certain financial targets during the holiday shopping season.