Toys R Us to Close all Stores- Update
It is with a heavy heart that we report the following news, Toys R Us has decided to close all of it’s US stores in the next 60 days
According to the Wall Street Journal, Toys R Us’ Chief Executive told workers that the company plans to file Liquidation Papers this evening. The company is said to pay the employees at least 60 days worth of wages and benefits and will likely liquidate many of the stores in other countries as well.
This is quite a blow to toy collectors and the industry as a whole as Toys R Us is/was one of the last dedicated Toy Store Chains left. After this, we will only have the shrinking toy aisles at stores Target/Walmart, and online stores.
UPDATE: A Toys R Us insider has confirmed to us that the aforementioned 60 days takes effect starting tomorrow which is when we will start seeing sales at all of the stores.
UPDATE 2: CNBC is now reporting that Toys R’ Us is looking at a plan to keep 200 stores open in the US by combining them with their more healthy Canadian operations.
The CNBC report makes no indication about the possible offer coming from MGA nor is it clear if the two things are connected.
Bloomberg has released a report indicating that a last ditch effort might be organizing to save some remnants of Toys R’ Us. This effort to save the toy retailer which reportedly began taking steps to liquidate it’s US and UK assets this week is being lead by toy maker MGA Entertainment.
MGA CEO Isaac Larian is apparently trying to rally fellow toymakers to make a bid for the Canadian operations of Toys “R” Us Inc., which is said to be in fairly good condition as well as possibly saving some stores in the US where the retailer currently has around 800 locations. Larian who was quoted as saying “If there is no Toys “R” Us, I don’t think there is a toy business,” apparently is willing to put his own money into the effort and a bid is said to be made by the group on Thursday, which is when Toys “R” Us has it’s hearing in bankruptcy court. It is unknown how much money he and his group have at their disposal for the effort, but they have hired UBS Group AG as an adviser and are working with a New York based real estate developer called Moinian Group on the effort.
We will update this story as events develop.