Another major branch is closing alongside Toys 'R' Us, affects millions
A branch of the big toy store will be closing as well. Parents that were planning on getting their baby supplies from Babies ‘R’ Us, need to move fast.
According to Pop Culture, the baby stores will be closing too. The closer of the stores is meant to help the company deal with the bankruptcy that it is going through.
Toys ‘R’ Us disappointed children around the US after the brand announced last week that they would be closing their stores for good. But now parents with gift cards and registries for Babies ‘R’ Us will need to buy their items quickly too.
According to People, a company spokesperson revealed that all customer and loyalty programs, such as the Rewards ‘R’ Us program and Geoffrey’s Birthday List, were currently continuing as normal.
Toys “R” Us to officially close this summer. 😢https://t.co/zwvq9KSmQx— HYPEBEAST (@HYPEBEAST) March 19, 2018
But within the following weeks, those programs will also come to an end. The spokesperson also added that it was up to the consumer to transfer their registry.
Toy ‘R’ Us announced that after 70 years in business it would shut down or sell off the remainder of its 735 stores in the US. This comes six months after the brand filed for a Chapter 11 bankruptcy.
“The reinvention of our brands requires that we make tough decisions about our priorities and focus. To that end and following a top-to-bottom assessment of our business, we have decided to close a number of our U.S. stores.”
Toys ‘R’ Us CEO Dave Brandon, Pop Culture, March 20, 2018
The bankruptcy was filed in an effort to shed $5 billion that they had accumulated in debt. It wants to reinvest the $400 million it was spending a year to pay that off, into its stores.
In January 2018, the company announced that it would be closing around 180 stores in the US. About half of those stores would Babies ‘R’ Us stores.
Toys ‘R’ Us CEO Dave Brandon said, “The number accounted for roughly 20% of its US presence. We also intend to convert a number of locations into co-branded Toys 'R’ Us and Babies 'R' Us stores.”
He shared the actions that they were taking were necessary to give them the best chance to emerge from their bankruptcy proceedings. Brandon stated that they wanted to be a more viable and competitive company.
He wished them to provide the level of service and experience people expected from a market leader. Shoppers who still had gift cards for both stores were given 30 days to use them.
Alternatively, shoppers could also expect liquidation sales over the next few months.