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After 70 years, Toys R Us going out of business

by Lynde Langdon
Posted 3/15/18, 12:22 pm

Toys R Us on Wednesday informed employees of its plan to close all of its U.S. stores in the coming months. The chain’s liquidation will result in the shuttering of 740 retail locations and eliminate about 30,000 jobs. The 70-year-old company filed for Chapter 11 bankruptcy protection last year to ward off creditors who were owed about $5 billion. The announcement appears to have hurt the company’s holiday sales, which proved dismal as customers turned to other retailers with steadier reputations. Toys R Us employees in the U.S. will get paid for the next 60 days if they show up for work, but after that all benefits and pay will be cut, CEO David Brandon said at a company meeting Wednesday. Some workers will be asked to stay longer to help with the liquidation.


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Lynde Langdon

Lynde is a WORLD Digital assistant editor and reports on popular and fine arts. She lives in Wichita, Kan., with her husband and two daughters. Follow Lynde on Twitter @lmlangdon.

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Comments

  • CaptTee's picture
    CaptTee
    Posted: Thu, 03/15/2018 01:54 pm

    Not a surprise to anyone who has looked at how empty their parking lots are most of the year. Last year around Christmas they were more empty than previous years, so my wife and I even asked, "How can they stay open?"

  • DBMiller
    Posted: Fri, 03/16/2018 04:40 pm

    As tragic as it is to see a company go under, and to realize that thousands will be unemployed as a result, a worse tragedy would occur if some government program were put into place to bail Toys R Us out. This would cost billions of dollars to favor this one company and hurt its competitors, and the workers might keep their jobs but lose a sense of accomplishment when they could be more valuable working for a firm that is valued for its efforts by making a profit. This may sound callous, but the government does not support failing buggy manufacturers or whale oil refiners; by these same principles, governments should not be bailing out failing companies or industries, nor supporting supposedly promising new technologies.

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