Toys R Us in the USA is seeking an extension to make arrangements for its bankruptcy plans as it looks at which stores to close.
An application with the US Bankruptcy Court has been filed by Toys R Us, seeking an extension beyond April 16 to review its property leases. Additionally, the company is using a liquidation firm to advise on store closures going forward.
Toy World reports the company’s latest actions:
The retailer has not announced how many stores it plans to close, but has said in a court filing that it had hired New York-based Malfitano Partners for help “soliciting and evaluating proposals to liquidate the inventory and furniture, fixtures, and equipment in certain store locations that the (company has) identified for closing.”
CEO David Brandon told USA Today in December that the company hopes to emerge from bankruptcy well before the 2018 holiday shopping season.
He commented: “We’re doing a complete review of our real estate portfolio. Everybody understands that the Chapter 11 process puts us in a position where we can consider making changes to our fleet of stores. We’re going through that process, and we’ll have a lot more to say about it probably in the first couple weeks of January.’’
Whatever the exact outcome, it seems clear that Toys R Us will be a very different retail chain than consumers are used to after the dust has settled.