The 70-year-old retailer that has dealt with the kid’s toys and infant items has succumbed to heavy debt and relentless trends that undercut its business.
From online shopping to mobile games the advancement has led the company toward shuttering its US operations, jeopardising the jobs of some 30,000 employees while spelling the end for a chain known to generations of children and parents for its sprawling stores and Geoffrey the giraffe mascot. The demise of Toys R Us will have a ripple effect on everything from toy makers to consumers to landlords.
The closing of the company's 740 US stores over the coming months will finalise the downfall of the chain that succumbed to heavy debt and relentless trends that undercut its business, from online shopping to mobile games. The toy makers and landlords who depended on the chain may need to scramble for alternatives after the company is shut.
CEO David Brandon told employees that the company's plan is to liquidate all of its US stores, according to an audio recording of the meeting obtained by The Associated Press.
Brandon said, “Toys R Us will try to bundle its Canadian business, with about 200 stores, and find a buyer. The company's US online store would still be running for the next couple of weeks in case there's a buyer for it.”
It's likely to also liquidate its businesses in Australia, France, Poland, Portugal and Spain, according to the recording. It's already shuttering its business in the UK. That would leave it with stores in Canada, central Europe and Asia, where it could find buyers for those assets.