Toys R’ Us are planning to close or sell all 800 of its U.S stores, affecting as many as 33,000 jobs, the Wall Street journal reports.
Toys ‘R’ Us has struggled with more than $5 billion in debt from a leveraged buyout. But likely the biggest cause for the closings are that the vast majority of people now shop online where Amazon dominates
In January, Toys R Us announced plans to close up to 180 of its’ U.S. stores. It began going-out-of-business sales at those stores in early February.
In the weeks that followed the January announcement, reports surfaced about the retailers situation getting progressively worse, with insiders saying that vendors were not being paid and that employees were worried the company wouldn’t meet its payroll.
Outside the U.S, Toys R’ Us will still have roughly 800 stores worldwide. This closure will leave huge mark in the toys industry in the U.S as Toys R’ Us were the main retailer for thousands of small companies.