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Tens of thousands of jobs at risk as Toys R US 'announces closure' of it remaining American shops

Company had already announced plans to close its remaining UK stores

Jeremy B. White
San Francisco
Thursday 15 March 2018 01:03 GMT
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The toy company said it would seek creditor approval to shut outlets in order to save costs
The toy company said it would seek creditor approval to shut outlets in order to save costs (Getty)

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Toys R Us reportedly plans to shutter or sell its remaining American stores, putting more than 30,000 at risk.

The planned closures would affect 800 stores employing people, according to the Washington Post.

A representative of Toys R Us did not immediately respond to The Independent's request for comment.

While the company once enjoyed a dominant position as a retailer of children’s products, Toys R Us began losing market share to brick-and-mortar competitors like Target and Walmart while contending with the rise of online shopping.

Financial woes led the company to file for bankruptcy last year as it struggled under the weight of a roughly $5bn (£3.6bn) debt load.

In January, the company announced it was closing 182 American stores as it sought to reorganise in bankruptcy.

Earlier in the day, Toys R Us announced it would begin the process of closing its remaining UK locations.

“We have made every effort to secure a buyer for all or part of the Company’s business”, a statement from the company’s UK administrators said. “This process attracted some interest, but ultimately no party has been able to move forward with a formal bid prior to the expiration of the stated deadline”.

Toys R Us to close all 100 UK stores

Toys R Us grew out of a Washington, DC toy shop founded in 1948 by Charles Lazarus, who in 1981 described the chain as “a supermarket for toys”.

Over the years it became one of America’s more recognisable brands, helping to cement its place with its “I don’t want to grow up, I’m a Toys R Us” kid jingle. CEO Dave Brandon reportedly opened the company’s bankruptcy filing by invoking those words.

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