Toys R Us Closing U.S. Stores, Liquidating Inventory
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NEW YORK (KDKA/AP) - Toys R Us will sell or close all of its U.S. stores, jeopardizing the jobs of some 30,000 employees while spelling the end for a chain known to generations for its sprawling stores and Geoffrey the giraffe mascot.
Toys R Us Chairman and Chief Executive Officer Dave Brandon said in a statement, "I am very disappointed with the result, but we no longer have the financial support to continue the Company's U.S. operations."
" … 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," he continued.
Toys R Us management told employees during a call Wednesday.
Management said it plans to liquidate all of its U.S. stores. After that, it could do a deal with its Canadian operation to run some of its U.S. stores.
Further details on the timeline for the liquidation of stores and going out of business sales have not been announced.
The company currently operates 735 stores in the U.S., including eleven Toys R Us and/or Babies R Us locations in the Pittsburgh area.
The chain filed for Chapter 11 bankruptcy protection last fall, saddled with debt that hurt its attempts to compete.
It pledged then to stay open, but had weak sales during the critical holiday season. In January it announced plans to close about 180 stores.
The demise of Toys R Us will have a ripple effect. The closing of the company's U.S. stores will finalize the downfall of the chain and force toy makers and landlords to scramble for alternatives.
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