1. News
July 2, 2018

Retailer Toys R Us closes the last of its stores in the US

Retailer Toys R Us closes its last store in the US following its decision in March this year to file a motion seeking Bankruptcy Court approval.

Retailer Toys R Us closes its last store in the US following its decision in March this year to file a motion seeking Bankruptcy Court approval.

The company liquidated its inventory in all 735 of its stores in the US and Puerto Rico.

The company is also considering a sale of its Canadian and international operations in Asia and Central Europe, including Germany, Austria and Switzerland.

“We will also now have the resources available to reinvigorate our stores, improve our customers’ experience and grow our market leading position.”

According to the bankruptcy agreement filed, the retailer will not offer any severance pay to its 31,000 employees, reported cbslocal.com.

The retailer will also sell its brand name, trademarks and mascot, Geoffrey, through an auction in August this year.

In May this year, the company received approval from the US and Canadian courts for the sale of its business to Ontario-based investment management firm Fairfax Financial Holdings.

Commenting on the approval, Toys R Us Canada president Melanie Teed-Murch said: “With this strong ownership, we will also now have the resources available to reinvigorate our stores, improve our customers’ experience and grow our market leading position.”

Established in 1983, Toys R Us was recognised as a popular brand of toys and baby products.

In 2005, the entire company was acquired by a group of investors led by KKR Group, Bain Capital and Vornado Realty Trust for $6.6bn, as well as the assumption of debt.