Published: Thu, March 15, 2018
Sports | By Spencer Underwood

Toys R Us to close all of its United Kingdom stores

Toys R Us to close all of its United Kingdom stores

Retail giant Toys "R" Us intends to shut down all 100 of its United Kingdom stores over the coming weeks, resulting in the loss of around 3000 jobs.

It's believed around 25 stores will be shut down tomorrow, with the remaining 75 being closed down over the next six weeks.

Despite turnaround efforts at Toys R Us, which included adding more hands-on "play labs", retail experts say the 60-year-old company has been unable to get customers back into its stores.

Toys R Us was also hurt by the shift to mobile devices taking up more play time.

CEO David Brandon made the comment during a call Wednesday afternoon with employees, according to a report in the Wall Street Journal.

The toy makers will also have to find new places to sell their goods.

The company laid off 67 people at its headquarters Wednesday.

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A private equity consortium led by KKR Group and including Bain Capital made a leveraged purchase of Toys R Us in 2005, and the company struggled under the debt used for the buyout. Besides the collapse of Toys R Us and Maplin, a host of other firms are undergoing painful restructurings, including fashion chain New Look and eateries run by celebrity chef Jamie Oliver as well as the Byron and Prezzo restaurant chains. We'll keep you posted on any new details.

-2017: Toys R Us files for Chapter 11 bankruptcy protection.

A California-based toy company says it is bidding for the Canadian operations of Toys "R" Us Inc., the USA industry giant that entered court protection from creditors last September.

The footwear maker and retailer Aerosoles closed 30 stores in 2016 but still had 78 operational US locations last fall, when it filed for bankruptcy.

It's anticipated that toy manufacturers will suffer from the Toys "R" Us liquidation in the U.S., as the company accounts for about 15 per cent of American toy sales.

First Toys R Us store is opened.

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