Toys R’ Us is preparing its employees for the worst case scenario, but it seems even the retailer isn’t positive what lies ahead.
Following numerous rumors last week that Toys R’ Us would be closing its doors for good, Chief Executive David Brandon informed employees on Wednesday that the company would be filing liquidation papers in the evening ahead of a bankruptcy court hearing on Thursday. He assured employees that they will be paid for the next 60 days, but beyond that, it’s a giant question mark.
The current plan calls for the company to shut down its U.S. operations and it will likely liquidate its stores in France, Poland, Spain, and Australia. The U.K. stores also announced on Wednesday that they would all be closing. The stores in Canada, Central Europe, and Asia will be sold off.
Brandon says there is a chance the company may package 200 U.S. locations with the stores in Canada and try to sell those to one buyer. Beyond that, however, it looks as though the world’s largest toy retailer is heading to the graveyard.
More should be known after the bankruptcy hearing on Thursday, but, for now, things do not look promising for the company.
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