Not playing around: Toys R Us to shutter all 735 US stores

The iconic brand is discussing a sale of 200 top locations with Canadian counterpart

Los Angeles /
Mar.March 15, 2018 09:06 AM
(Credit: Wikipedia, Max Pixel, Pixabay)

The death of the once ubiquitous toy retailer Toys R Us is near, after the company announced it planned to close all of its 735 nationwide stores, ending months of efforts to salvage the iconic brand.

The closures include its Babies R Us brand and come six months after filing for bankruptcy in September.  Its December effort to pull itself out of bankruptcy by closing 180 stores apparently failed to help save the company, which employs 33,000 people nationwide, according to the Wall Street Journal.

Toys R Us operates around a dozen stores in the Los Angeles area, although the company already planned to close four of those in December. It has about the same number in Miami, according to its website, but none of those was on its list of 11 Florida stores planned for closure in December.

There are around two dozen stores between the New Jersey and the New York City area, according to the company. One of those, the Union Square location in Manhattan, was scheduled for closure in December.

Toys R Us said in a news release that it was discussing a sale of 200 of its top performing U.S. stores to be combined with its Canadian outfit, although didn’t specify if that discussion was related to the Larian bid.

Vornado Realty Trust, Bain Capital, and KKR & Co purchased Toys R Us in a leveraged buyout in 2005 for $7.5 billion, including $1.3 billion in equity. Toys R Us has paid out around $470 million to the firms in interest and fees since the buyout, according to reports but it has struggled to pay off its debts, which came out to around $4.9 billion as of its September bankruptcy filing.

Still, it generated more than $11 billion in revenue in the last fiscal year and a global closure would be a major blow to toy companies, according to the Journal.

A source told the Washington Post that the closures would be gradual, which could give Toys R Us time to find a buyer for some of its assets. The company called the closures “an orderly wind-down” of its U.S. business.

A group of toy manufacturers led by MGA Entertainment CEO Isaac Larian submitted a bid to buy the 82 Toys R Us stores in Canada and is interested in buying 400 stores stateside.

Toys R Us CEO David Brandon told staff on Wednesday that the company was “putting a for-sale sign on everything,” and was looking for any deal that was better than liquidation.

“Frankly, all anyone has to do is offer one dollar more,” Brandon said. [WSJ] – Dennis Lynch


Related Articles

arrow_forward_ios
Simon Property Group's David Simon, Brea Mall at 1065 Brea Mall (Getty, Google Maps, Simon Property Group)
Simon seeks to redevelop former Sears site at Brea Mall
Simon seeks to redevelop former Sears site at Brea Mall
CBRE's Stew Weston with rendering of 1011 North Sycamore Avenue
CIM to build offices on West Hollywood cement plant site
CIM to build offices on West Hollywood cement plant site
Bed, Bath & Beyond's Sue Gove with 14351 Hindry Avenue
Bed Bath & Beyond to close seven more stores across SoCal
Bed Bath & Beyond to close seven more stores across SoCal
Griffin Living's Paul Griffin III and Griffin Plaza at 3885-3977 Cochran Street in Simi Valley
Griffin Living sells Simi Valley shopping center for $22M
Griffin Living sells Simi Valley shopping center for $22M
TGS Management's Fred Taylor and FivePoint's Daniel Hedigan
TGS Management pays $240M to buy 42 acres for Irvine data hub
TGS Management pays $240M to buy 42 acres for Irvine data hub
Susan Phillips, a professor of environmental analysis and director of Pitzer College’s Robert Redford Conservancy for Southern California Sustainability and San Bernardino County Supervisor Curt Hagman with warehouses in San Bernardino county
IE warehouse boom generates call for building moratorium
IE warehouse boom generates call for building moratorium
Oaktree’s  Howard Marks with 444 S. Flower Street (Oaktree, Getty)
Coretrust loses DTLA tower to Oaktree in foreclosure
Coretrust loses DTLA tower to Oaktree in foreclosure
Tova Capital's Zach Boren along with 205-233 East Anaheim Street in Long Beach (Getty, Tova Capital, Google Maps)
Tova Capital buys 35K sf shopping center in Long Beach for $6.2M
Tova Capital buys 35K sf shopping center in Long Beach for $6.2M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...