After several years of struggling to remain competitive, America’s Toys ‘R’ Us said it will be selling or closing down its entire US operations.
Toys ‘R’ Us has not being able to keep up with the stiff competition from Amazon and other online toy and gadget retailers.
Analysts also attributed the company’s misfortune to the decline in the sales of toys to video games and digital toys.
The company said in a statement that:
“At Toys“R”Us we are undertaking a financial restructuring to ensure the iconic Toys“R”Us and Babies“R”Us brands live on for many generations. The things customers like the most will not be affected. We continue to offer amazing new products and great customer service, just as we always have. In addition, Toys“R”Us is committed to working with our vendors to help ensure that inventory levels are maintained and products continue to be delivered in a timely fashion.
To achieve our financial objectives, Toys“R”Us and some of our U.S. subsidiaries and our Canadian subsidiary proactively and voluntarily filed for Chapter 11 of the Bankruptcy Code in the U.S. Our Canadian subsidiary also began parallel proceedings under the Companies’ Creditors Arrangement Act in Canada. The Company’s operations outside of the U.S. and Canada are separate entities, and are not part of the Chapter 11 filing and CCAA proceedings. On February 28, 2018, the Toys“R”Us UK operations went into administration, with Moorfields Advisory Limited being appointed as the administrator.
We are confident that this financial restructuring is the best path forward to ensure that Toys“R”Us can invest in our business, continue to improve our customers’ experience and strengthen our competitive position.”
According to official disclosure, the company’s American unit employs over 30,000 people.