Published: Thu, March 15, 2018
Economy | By

Toys R Us is reportedly shutting down stores in the US

Toys R Us is reportedly shutting down stores in the US

The once-popular toy store - which also sells video games and consoles - used to be one of the biggest names in the retail space, but has stumbled in recent times due to the rise of online stores like Amazon.

After the news was announced to staff on Wednesday, 25 stores are expected to close later this week, with a further 75 shutting in the next six weeks.

The firm appointed Moorfields Advisory to oversee an administration at the end of February but the group said on Wednesday that "it has not been possible to secure a sale".

He added that Toys "R" Us also planned to sell operations in Canada, central Europe and Asia.

Toys "R" Us hasn't made a full-year profit since 2012 and has lost $2.5 billion since then.

Staff at Toys R Us in Reading will be made redundant after the company confirmed it will close all United Kingdom stores within six weeks.

"The administrators remain open to interest from potential buyers for parts of the business but it has been necessary to make a total of 67 redundancies at the company's head office in Maidenhead earlier today".

Suppliers had withheld many toy shipments ahead of the busy holiday period because of fears that Toys "R" Us' wouldn't pay them.

A closure process has also already begun with 26 loss-making stores earmarked from late past year, when Toys R Us UK pushed through a restructure in its company voluntary agreement (CVA) proposal that was approved just before Christmas.

"They missed an opportunity to reposition themselves as an inspirational place to shop at".

Prepare to see reminders of the death of your childhood everywhere you go, because giant toy retailer and Christmas gift dream maker/crusher Toys "R" Us is filing for liquidation this week, according to CBS. Those sales were extended on Tuesday and products are being offered at discounts of as much as 30pc.

Like this: