Toys “R” Us is planning to close as many as 180 of its stores as it struggles to reorganize in bankruptcy. The planned closings represent about 20 percent of Toys “R” Us stores
The retail chain, which filed for bankruptcy protection in September, has been fighting an uphill battle to stay relevant amid growing competition from the likes of Target, Walmart and Amazon.com.
Dave Brandon, Chairman and CEO said in a letter Wednesday that tough decisions are required to save Toys “R’ Us.
Toys “R” Us operates about 900 stores in the U.S.
The store closings will begin in February and the majority of the targeted locations will go dark by mid-April. At some other locations, the retailer is combining its Toys “R” Us and Babies “R” Us stores.
As many as 4,500 workers could be affected. A spokeswoman said the company would try to find positions in other stores for as many of the displaced workers as it could. It’s unclear how many workers would be able to relocate and commute to another store farther from their homes. Terminated workers would be paid severance.