The definitive end is approaching for the former toy store giant, Toys “R” Us. After the death sentence was signed for its 100 British stores, its American store network will also shut down.
33,000 jobs endangered
By the end of February, it became clear that Toys “R” Us’ British division filed for bankruptcy, costing more than 3,000 jobs. CEO David Brandon has now also announced the closure of more than 700 American stores. It had already shut down 182 stores, but the remaining 700 are now also selling everything. Unless it finds a buyer, the bankruptcy will cost 33,000 jobs.
The American toy chain, founded in 1948, had more than 2,000 stores worldwide when it was at its peak. In the meantime, it only has 1,600 stores, including the British and American stores. The chain was oblivious to the internet hype (worldwide online toy sales grew 55 % in the past two years, to 17 billion dollars) and was unable to stop the flow of customers to Amazon and Walmart. Its losses kept compounding since 2013, after a group of venture capitalist groups acquired the chain in 2005.
Toy manufacturers like Hasbro and Mattel will also suffer from its closure, because they will not only lose a major distributor, but also one of their best display showcases to present products to children and their parents.