Toys “R” Us, squeezed by Amazon.com and huge competitors like Walmart, will close 20 per cent of its U.S. stores within months.
Hobbled by $5 billion in debt, the company that once dominated toy sales in the U.S. filed for bankruptcy protection in September.
Meanwhile, Toys “R” Us Canada president Melanie Teed-Murch said all 83 stores are open for business.
“Since the initiation of our September court proceedings, our primary focus has been reimagining our business with you, our customers in mind and ensuring a normal course of operations,” Teed-Murch said in an open letter to customers.
Toys “R” US isn’t alone. Around three dozen retailers sought bankruptcy protection last year due in large part to a radical shift in consumer behaviour, both in where they shop, and what they buy. Some of the companies that have gone under have been small, but there are also big retailers on the list, like Payless Shoe Source, Gymboree Corp. and True Religion jeans.
Story Credit: Financialpost
Photo Credit: Flickr