Toys “R” Us CEO David Brandon told corporate staff, that it will maintain the Babies R Us registry and the web stores in hopes someone might want to buy that asset.
The company owns or licenses 810 Toys “R” Us and Babies “R” Us locations in the United States and Puerto Rico. It also owns more than 750 international stores and more than 245 licensed stores in 37 countries and jurisdictions.
The company filed for US bankruptcy protection September 18, 2017. It plans to honor all gift cards for the next 30 days after their announcement.
This comes as a very worrying time for all retail stores and landlords of retail property in general. They worry that the “Amazon Effect” has devoured another large retailer. The closing of Sports Authority, bankruptcy of Aéropostale and closings on many JC Penny and Macy’s stores are some of the more recent effects of online shopping. But now, one of, if not the biggest toy company in the world is shutting its doors.
This of course leads to the next fundamental question. What will happen to all of the retail space left over from customers prefer to shop from the comfort of their own home? International retail landlords are left wondering how they are going to fill their one valuable property.
The first Toys “R” Us location opened in 1968, with the Babies “R” Us store opening in 1996.