Updated February 22, 2018: Toys 'R' Us is expanding the number of store closures planned following its Chapter 11 bankruptcy protection filing from 180 to 380, according to Wall Street Journal. The retailer also plans to lay off "a significant portion" of its corporate staff. All this comes following what's described as "disappointing holiday sales."
Toys 'R' Us had roughly 880 U.S. stories in 2017 prior to its bankruptcy filing, meaning this would be a 43.18% reduction in store count nationwide.
Toys 'R' Us previously estimated that the 180 store closings would mean mean job loses for 4500 individuals; that means a 25 person-per-store average. When applied to this larger 380 number, that would equate to 9,800 employees.
The updated list of store closures has not been released.
Original Story: Toys 'R' Us has submitted plans to bankruptcy courts to close 180 of its 880 stores in the United States, an overwhelming majority of which ave "negative sales trends," according to CNBC.
The long-time toy retailer plans to speak with its various landlords about getting out of its leases, and hire third-party liquidators to sell the entire contents of the stores - from toys to games, clothing, books, comic books, and even fixtures. They expect to begin closures in mid-February.
This comes following the company's Chapter 11 bankruptcy protection filing in September 15 following years of poor sales and a looming $5 billion debt.
"The reinvention of our brands requires that we make tough decisions about our priorities and focus," said Toys 'R' Us Chairman/CEO David Brandon. "The actions we are taking are necessary to give us the best chance to emerge from our bankruptcy proceedings as a more viable and competitive company."
Toys 'R' Us operates over 1500 stores across the globe prior to these planned closures.
For a complete list of planned store closures, view the full list here.