Toys 'R' Us to shut or sell all USA stores

Toys 'R' Us to shut or sell all USA stores

Iconic toy store chain Toys "R" Us Inc will sell or close all its USA stores in the coming months, risking up to 33,000 jobs, the Wall Street Journal reported on Wednesday.

That move affecting about 700 remaining stores - under Toys R Us and Babies R Us brands - followed news from hours earlier in Great Britain, where the chain is closing its 100 stores there within six weeks.

The company, which filed for bankruptcy in the United States past year, said it would close its remaining 75 stores in Britain in addition to the 25 it has already shut.

The collapse will put more than 3,000 people out of work as a dismal period for the retail sector continues.

Toys R Us was also hurt by the shift to mobile devices taking up more play time.

But in six weeks time these shops will no longer exist because all 100 United Kingdom stores are closing down.

Workers were told the grim news on Wednesday morning alongside details of the first redundancies, involving 67 head office staff in Maidenhead.

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Multiple outlets reported on Wednesday the company has told its 33,000 employees it will sell or close all of its us stores.

Toys R Us actually partnered with Amazon at the beginning of the digital age.

Toys "R" Us has also closed more than 100 USA stores in hopes of avoiding liquidation. Lately, reports have surfaced indicating that Toys R Us is now preparing to liquidate operations entirely.

The Toys "R" Us liquidation would be the largest layoff in the retail industry since at least 2015, according to outplacement firm, Challenger, Grey & Christmas.

The UK arm of Toys "R" Us entered administration, a form of creditor protection, in February, sunk by weak consumer sentiment, the growth of online sales and currency swings as a result of Brexit.

Toys R Us also struggled with debt since private-equity firms Bain Capital, KKR & Co. and Vornado Realty Trust took it private in a $6.6 billion leveraged buyout in 2005.

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