Toys R Us continues to operate in Canada, although the toy chain is poised to close The Canadian giant toy company repeated Wednesday the same message it had communicated last week, when media reported that Toys R Us was preparing to liquidate its US stores.
According to Toys R Us Canada Vice President of Marketing, Clint Gaudry, the company’s 82 Canadian stores remain open and the company continues to honor all of its consumer policies and programs such as its Baby Gift Registry. gift cards and loyalty programs.
The Canadian division of Toys R Us shielded itself from its creditors last September, a day after the US division did the same.
Problems in the United States
In January, Toys R Us announced it would close 180 stores in the United States in the coming months.
On the night of Wednesday to Thursday, it was learned that the retailer was closing its 735 stores in the United States. Toys R Us was unable to find a buyer and was unable to enter into a multi-billion dollar US debt restructuring agreement.
CEO David Brandon himself announced the news to employees during a conference call at the group’s headquarters in Wayne, New Jersey. The company did not want to give interviews to the media.all its stores in the United States.
Sell Canadian stores
It is not impossible that the chain keeps its most efficient stores opened after its liquidation.
One of the hypotheses explored by Toys R Us is to sell Canadian stores, which have a positive balance sheet, and 200 of its most profitable American stores. The company would then sell the rest of the stores, says CNBC.
US employees, who account for more than half of the group’s 65,000 employees, will keep their jobs for another 60 days, David Brandon told them, according to CNBC.
Isaac Larian, the president and chief operating officer of MGA Entertainment, a California-based toy company, plans to bid for the retailer’s Canadian operations.
In a brief statement sent by e-mail to the Canadian Press, he explains that Toys R Us Canada’s activities are working well, that they are well run and that at a reasonable price, it’s a good deal.
The boss of MGA Entertainment, who already owns brands such as LOL Surprise !, Little Tikes and Num Names, did not say whether he wanted to buy the whole chain in Canada or only a part.
Toys R Us declared bankruptcy in September 2017, under the protection of Chapter 11 , a US provision that allows a company to continue to operate normally safe from its creditors.
Elsewhere in the world
In the United Kingdom, the company was placed at the end of February under administration, which could lead to the liquidation of its 105 stores and the loss of 3200 jobs.
The toy retailer is likely to liquidate its stores in France, Spain, Poland and Australia, according to David Brandon reported by the Wall Street Journal .
As for the facilities in Asia and Central Europe, the group would consider selling them, according to the newspaper.
Toys R Us is only the latest victim of a series of physical store chains that are struggling at a time when e-commerce is gaining popularity and consumers are changing their habits.
Sears Canada, which had protected itself from its creditors last June, ended up liquidating all of its stores .
Jackson Bey was born and raised in Lethbridge Alberta but moved east when he was 22. Apart from running his own consulting firm. Jackson spends his time canoeing the many lakes of Ontario. As a financial journalist Jackson has published stories for CBC Business Online, as well as Buzz Feed and Motherboard. As a contributor to Billionaire 365, Jackson mostly covers markets and trade.