Toys R Us has filed a motion seeking Bankruptcy Court approval to begin the process of conducting an orderly wind-down of its US business and liquidation of inventory in all 735 of its stores in the US and in Puerto Rico.
The company also announced that it is pursuing a going concern reorganisation and a sale process for its Canadian and international operations in Asia and Central Europe, including Germany, Austria and Switzerland.
The retailer disclosed that is engaged in discussions with certain interested parties for a transaction that could combine up to 200 of the top-performing US stores with its Canadian operations.
Toys R Us chairman and chief executive officer Dave Brandon said: “I am very disappointed with the result, but we no longer have the financial support to continue the company’s US operations.
“We are therefore implementing an orderly process to shutter our US operations and will pursue going concern sales or reorganisations of certain of our international businesses, while our other international businesses consider their options.”
Toys R Us’ operations in Australia, France, Poland, Portugal and Spain are considering their option in the light of this announcement, including potential sale processes in their respective markets.
Brandon added: “There are many people and organisations who have remained in our corner every step along the way. I want to thank our extraordinary team members who helped build Toys R Us into a global brand.
“I also want to express my appreciation for my colleagues on our board who have continued to provide support to sustain the brand and our operations throughout the restructuring process. I would also like to thank our vendors who we owe a great deal of gratitude to for their decades of support.
“This is a profoundly sad day for us, as well as the millions of kids and families who we have served for the past 70 years.”
The company and its advisers are working on options to minimise the impact of the US liquidation on the Canadian and other international markets.