After holiday sales failed to help distressed retailer Toys R Us bounce back from bankruptcy, the retailer will close another 200 stores in addition to the 180 previously announced.
That represents nearly 50% of Toys R Us' existing 800-store footprint. In addition to the closures, the chain will lay off thousands to cope with its debt and avoid being in breach of a $3.1B loan.
An estimated 4,500 workers will be affected by the closures and will reportedly no longer receive severance pay, though some may be eligible for bonuses, the Wall Street Journal reports.
As Toys R Us continues to grapple with its plans for the future, it will also be obligated to provide a new business plan to lenders of the loan. The goal is to prove that the company is able to pay back its debt by continuing to operate its business rather than liquidating, CNBC reports.
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