Toys “R” Us plans to close 180 stores as part of the company’s attempt to emerge from Chapter 11 bankruptcy.
That includes four in Los Angeles County: Covina, Riverside, Santa Clarita and Torrance. Altogether, the toy retailer will close 27 stores in California.
The Wayne, New Jersey-based company is also shuttering 15 stores in New York and three in Miami. Toys “R” Us plans to begin closing these stores in February.
“The reinvention of our brands requires that we make tough decisions about our priorities and focus,” chairman and CEO David Brandon said on Tuesday. “The actions we are taking are necessary to give us the best chance to emerge from our bankruptcy proceedings as a more viable and competitive company.”
The company filed for Chapter 11 protection in September. At the time, the New York Times reported that the company had more than $5 billion in long-term debt, $400 million of which comes due this year. Vornado Realty Trust, a real estate investment trust run by Steve Roth, owns a 32.5 percent stake in Toys “R” Us, according to its September SEC filing. That SEC filing came after Toys “R” Us filed for Chapter 11; the SEC report says Vornado doesn’t hold any of the company’s debt. [CNBC] — Kathryn Brenzel