With the weight of declining retail sales this holiday season, reports are coming out from Bloomberg that Toys’R’Us, the only remaining national toy store, is considering closing up to 200 of its retail stores after the holiday season.
Toys’R’Us filed for Chapter 11 Bankruptcy Protection in September as it was unable to pay the millions of dollars of debt that was coming due. However, due to its inability to pay toy manufacturers for the product on its shelves – specifically Hasbro and Mattel – the toy shopping season has dropped upwards of 15% compared to last year.
The exact number of potential store closings is only speculation, but the report from Bloomberg states from insiders that the company is projecting at least 100 stores and up to 200 stores total. This report comes on the heels of another report that stated Toys’R’Us won the ability in court to make sure their executives were paid $15 million dollars in bonuses for the 2017 fiscal year.
Our thoughts go out to the hard working employees who could be impacted by store closings. As to what could happen to upcoming Power Rangers Legacy items, which are exclusive to Toys’R’Us, is currently up in the air. We’ll keep you updated.