After months of trying to survive by restructuring the company, Toys R Us will be closing all their stores.
The company declared bankruptcy in September, with 5 billion dollars in debt. After dismal Christmas sales, Toys R Us announced they would be closing 182 stores in order to re-prioritize and adapt to the market shift to online purchases. The lack of an interested buyer seems to have sealed the toy retailer’s fate.
The official announcement that all stores will close is expected Thursday morning, March 15th, after the court hearing. Toys R Us reportedly filed liquidation papers on the evening of Wednesday, March 14th and communicated the impending closures to employees of the remaining 600 stores short thereafter.
Toys R Us has been in the toy business for nearly 70 years, and at one point was the dominant retailer in the child centric market. The rise of online retailers like Amazon and mass retailers with a large online presence, like Walmart and Target, has hurt the once great retailer and they have been struggling to keep up for the last few years.
The Toys R Us brand also includes the popular store Babies R Us. These stores are included in the closures.
The original 182 stores closing began their mark offs at 30% at the beginning of March, with a firm closing date of March 31st. It is unclear whether the new store closures will adopt this same timeline. Also unclear is what the discount trajectory will be, though rumor is that with no buyer lined up, Toys R Us will be looking to move merchandise more quickly than originally expected.
For those with local stores in the original 182 closures, expect deeper discounts in the weeks to come. All remaining stores are expected to begin their markdown process as early as Friday.
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Kristen B. is wife to the best Prince around, mama to the spunkiest little princesses, and lover of all things Disney. She started her savings journey three years ago and is now dedicated to making her family’s wishes come true one coupon at a time. She is so excited to take her love of saving to the next level and share her journey with you! Click here to catch up on Kristen’s Savings and join in on your own savings adventure!