Iconic toy chain Toys “R” Us, Inc. is closing its doors. The chain has filed a motion seeking Bankruptcy Court approval to start winding down its U.S. business and liquidate inventory in all 735 of its U.S. stores, including stores in Puerto Rico.
“This is a profoundly sad day for us as well as the millions of kids and families who we have served for the past 70 years," said CEO Dave Brandon.
“I am very disappointed with the result, but we no longer have the financial support to continue the Company’s U.S. operations," he continued. "We are therefore implementing an orderly process to shutter our U.S. operations and will pursue going concern sales or reorganizations of certain of our international businesses, while our other international businesses consider their options."
Toys“R”Us is pursuing a sale process for its Canadian and international operations in Asia and Central Europe, including Germany, Austria and Switzerland. The company’s international operations in Australia, France, Poland, Portugal and Spain are considering their options in light of this announcement, including potential sale processes in their respective markets. The company is working to minimize the impact on the Canadian and other international markets. As part of these efforts it's implementing a transition services arrangement for the next 60 days and is developing plans for a potential shared service function to support the international operations going forward.