Well, that didn’t take long. Toys R Us made it official. The famous brand is declaring bankruptcy in the US and Canada. This won’t affect the global chain.
Or to say it in another way, things got messy. Toys R Us is changing and the bankruptcy will be valid only in the US and Canada.
This means a total of 1600 Toys R Us and Babies R Us stores around the world will continue to work as normal. The company says they are a separate entity which is profitable and there will be no changes to them.
“Customers can also continue to shop for the toy and baby products they are looking for online on the Company’s newly launched www.toysrus.com and www.babiesrus.com web stores. Customers should expect the Company’s loyalty programs, including its Rewards“R”Us, Geoffrey’s Birthday List and Babies“R”Us Registry, to continue as normal”, the company reported.
“Today marks the dawn of a new era at Toys“R”Us where we expect that the financial constraints that have held us back will be addressed in a lasting and effective way. As the holiday season ramps up, our physical and web stores are open for business, and our team members around the world look forward to continuing to put huge smiles on children’s faces. We thank our vendors for their ongoing support through this important season and beyond. We also appreciate the strong support our investors have provided over time and the constructive role they are playing in this process that will allow us to create a brighter future for our company. And as importantly, we thank our team members in advance for their hard work and dedication to serving the millions of customers who will shop with us this holiday”, said Dave Brandon, Chairman and Chief Executive Officer.
So, for now, the stores in the US and Canada will continue to operate which is great news. Some of them will be restructured into changed experiences. What’s important is that those working there will continue to receive their wages and benefits. So, in the end, it may not be as scary as it was shaping up to be due to the rumors.