According to a Wall Street Journal report, Toys R Us plans to shut down 200 stores, following an announcement in January that it was closing more 180 outlets. The Journal also found that the toy seller changed its mind on giving its employees severance pay.
If the report citing people familiar with the matter is correct, 380 Toys R Us stores will be shut down in two months. Around 9,000 people will lose their jobs. The sources said that the store closings were spurred by a “disappointing holiday sales season”.
The company confirmed bankruptcy rumors by saying that it had filed for bankruptcy protection last month. The document’s date is January 23. A few days later, the nation’s largest toy seller announced the closings of 182 retail locations.
The 380 stores that will be closed account for 44 percent of the company’s stores in the United States.
Toys R Us to Lay Off 9,000 Employees
Toys R Us CEO Dave Brandon said that the brand needs to be reinvented and “tough decisions” are required. Brandon added that he company needs to set its priorities straight and take all measures necessary to emerge from the bankruptcy proceedings as a stronger company.
Wall Street Journal analysts believe that the number of stores to be shut down could be even higher. One source told the newspaper that store managers have told hourly workers that they will receive no severance benefits if they lose their job after a store closing. The January round of closings put the jobs of 4,500 people at risk. With the new announcement that number will climb to 9,000.
The negotiations over bankruptcy are ongoing. Meanwhile, a court allowed the company to give millions of dollars in bonuses to its senior executives, dismissing the opposition from a federal bankruptcy watchdog.
Image Source: Wikimedia
Latest posts by Anne-Marie Jackson (see all)
- SF Hospital Slaps New Parents with $19K Bill for Baby Treatment - Mar 10, 2019
- Furious Trump Blasts Harley-Davidson for Moving Production Overseas - Mar 10, 2019
- Warning! MRI Machines Could Poison You - Mar 10, 2019