As reported by USA Today, Toys”R”Us late Tuesday filed court documents outlining plans to close up to 182 stores as part of its bankruptcy reorganization plans.
The company noted that some closings may be avoided if it is able to negotiate more favorable lease terms. But most of the stores listed in the documents are expected to close as Toys”R“Us tries to reinvent itself as a leaner, smarter retailer.
Going-out-of-business sales are scheduled to begin in February and be completed in April.
Looking further into the listed stores, it appears that a large majority of the stores closing will be brick & mortar Babies”R”Us, with several Toys”R”Us that are farther out from major cities, likely due to lower sales. However, it isn’t quite clear yet if that was one of the deciding factors to close out specific stores.
What we do know is that Toys”R”Us will shrink its store fleet by about 20%, or some 6.9 million square feet, if all 182 stores are closed.
“The reinvention of our brands requires that we make tough decisions about our priorities and focus,” Toys R Us Chief Executive Dave Brandon said in a letter posted on the company’s website Tuesday night.
In addition, Toys”R” Us intends to convert a number of locations into combined Toys “R” Us and Babies”R”Us stores.
Earlier Tuesday, Toys”R”Us won Bankruptcy Court approval of a plan to pay landlords up to $1.3 million to extend store leases beyond an April 16 deadline.
See the full list of stores that will be closing HERE
Stay tuned for further updates.
Source: USA Today