Toys R Us will close 200 stores in the US

Networked American retailer Toys R Usspecializing in the sale of toys and baby products, plans to close 200 stores and lay off a significant part of the staff after the disappointing holiday sales season, writes Wall Street Journal.

Sources of publications say that the discussion about the closure of stores continues, and the number of closing stores may change. The company also refused to promise to offer severance pay to all affected employees. The publication has learned that company managers must notify employees with hourly wages that “in the process of closing stores there are no exemptions for severance pay”.

After starting the bankruptcy process Toys R Us requested permission to pay millions of bonuses to her top managers. Despite the fact that this was contrary to government policy, the court allowed the payments.

When the company started the bankruptcy process in September, it had 1600 stores all over the world and 800 in the USA. “We are focused on rethinking our business and getting out of bankruptcy.

“Decisions about the composition of our future structure will be based on the new business model, so it is premature to comment,” the spokeswoman said. Toys R Us.

It is noted that if the company continues to close its stores, the warehouse fleet will be reduced by approximately 50% - from 800 to 400 stores. Back in September, experts predicted that the company would need to downsize to 200 stores to stay afloat. Toys R Us appealed to the court with a request to extend the time limit for consideration of the application in order to notify landlords that it plans to stop providing rental at the store.

Earlier it was reported that the company plans to invest about $ 65 million to reformat its stores and improve financial performance.

Since the beginning of 2017, many retailers in the United States have announced the closure of stores, among them Sears, JC Penney, Payless Shoe Sourceand Ralph Loren flagship store in New York, a wave of store closures continues Macy's.

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