Toys R Us, the famous American toy retailer founded some 70 years ago, will close all of its stores in the United States and the United Kingdom. The Wall Street Journal reports today that CEO David Brandon made the news official today with the filing of liquidation papers. The shutdown of the stores will result in the loss of up to 33,000 jobs in America.
According to Bloomberg, Toys R Us had hundreds of millions in debt it had to restructure this year for its US operation, but it couldn’t do that or find a buyer. It was a similar situation in the UK, where Toys R Us also failed to find a buyer. As a result, Toys R Us is closing all of its UK stores, which will affect the company’s 3,000 employees in the region, according to CNN.
Toys R Us also operates separate businesses in Canada and Asia. The company’s Asian business is reportedly the most profitable, and will continue to operate. Additionally, Toys R Us runs stores in Australia, though it remains to be seen if those stores are in jeopardy.
Toys R Us had filed for bankruptcy protection last year in the United States, so the writing was on the wall.
Brandon, the Toys R Us CEO, said sluggish holiday sales were partly to blame for the tough times. According to The Verge, Brandon said holiday says were “no short of devastating.”