CNN Money is reporting that all Toys R Us and Babies R Us stores in the U. S. may close as early as next week.
Reports from various national outlets, including Bloomberg News and USA Today, indicate Toys R Us is preparing to move from Chapter 11 to Chapter 7 bankruptcy and begin liquidating all of its stores in the United States, including the Toys R Us and Babies R Us stores in Joplin.
Toys R Us tweeted a response noting that its stores are still open,but not addressing any of the reports:
The company declared for Chapter 11 bankruptcy in 2017 after being loaded with debt since a leveraged buyout in 2005. Stiff competition from online businesses, including Amazon, have caused the company's market share to dip perilously over the last several years.To our loyal customers: We’ve seen an amazing outpouring of love and support in recent days and we truly appreciate it. Our stores are open for business, ready to bring joy to children wherever we can, and to help new and expecting parents navigate raising a family.— ToysRUs (@ToysRUs) March 9, 2018
The following is from a post published moments ago in the Inquisitr:
The seriousness of the Toys R Us restructuring plan was questioned after a November 15 filing in U. S. Bankruptcy Court for the Eastern District of Virginia, in which the company asked for approval of $32 million in bonuses for CEO David Brandon and 16 other members of his management team at a time when Toys R Us had just reported $164 million in losses for the previous quarter.
The reason the $32 million in incentives is needed, accorded to the court filing was “to ensure these key members of the debtor’s management team are properly incentivized to meet the significant challenges upon us.”
It would appear those challenges weren't met.
2 comments:
Joplin was not listed on their on line site.
If the company moves into Chapter 7 bankruptcy as the post indicates, that list won't make a bit of difference- all of the stores will be closed and liquidated.
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