Toys R Us Considers Closing Up To 200 Stores
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Toys R Us may put 100 to 200 stores on the chopping block due to weak sales this holiday season.
While shuttering stores is not uncommon during bankruptcy proceedings (the toy chain filed for bankruptcy protection in September), it does go against Toys R Us’ initial claims that it would restructure the company without closing stores, Bloomberg reports.
But sales have declined approximately 15% this season compared to last year, forcing the Wayne, New Jersey-based chain to reconsider its options.
"As the holiday season ramps up, our physical and web stores are open for business, and our team members around the world look forward to continuing to put huge smiles on children’s faces," Toys R US CEO Dave Brandon said in a statement in September.
News of the potential closures sent supplier stocks plummeting on Monday. Mattel dropped 4.5% to $14.78, while Hasbro declined by 3.2% to $91.02, Bloomberg reports.
Prior to filing for bankruptcy, Toys R Us had an estimated $4.9B in debt. Since filing for bankruptcy protection, a group of lenders including JPMorgan Chase, has agreed to provide $3B in financing to help the retailer pay its suppliers and keep its stores open.