Why did Toysyrus go out of business?

Toys "R" Us: Toy retailer wants to close all US branches

After 70 years in the toy trade, the US company Toys "R" Us is preparing to close or sell all branches in the USA. That reported the Washington Post on Wednesday evening. More than 33,000 jobs are threatened by this decision.

According to a report by Wall Street Journal CEO David Brandon informed the employees in the USA about the expected closings in a conference call. The company's CEO is also said to have announced that business operations could also be discontinued in France, Spain, Poland and Australia. However, some US branches could continue to be operated by the Canadian company division. The company has so far declined to make an official statement.

The New Jersey company filed for bankruptcy last fall. Mainly due to the growing competition from online retailers, the company would have lost many customers. In September 2017 Toys "R" Us had already announced that it would close 180 US stores. On Wednesday, the company announced that all stores in the UK would be closed - 100 stores, almost a third of all toys "R" -Us stores in Europe. The end of business operations is now drawing near for around 700 other stores in the USA.

The toy retailer has more than five billion dollars in debt. Around 64,000 people work for Toys "R" Us worldwide.