December 6, according to the latest "Guardian" report, the troubled world-renowned toy retailer Toys R Us (Toys R Us) has confirmed the plan to close one-third of the British stores, but also said that all Stores in Christmas this year and New Year will continue to operate.
It is reported that the closure of one-third of the British stores means that starting next spring, at least 26 Toys R Us stores will be closed, about 800 jobs will be abolished.At the same time, Toys R Us the other UK A number of stores are also looking to downsize to reduce rents in stores.
In this regard, Steve Knights, General Manager of Toys R Us UK, explained that as the current warehouse-type stores opened in the 1980s and '90s were "too costly to operate in today's retail environment," the company had to take' firm Decisive action '.
On December 21, Toys R Us will require its creditors to approve a company's voluntary agreement, a bankruptcy process that retailers use to shut down a lossy store, to a lesser extent by shutting down stores to reduce rental costs for Toys R Us The costs have now been submitted to Alvarez & Marsa, a bankruptcy expert consultancy.
'Like many other UK retailers in the current market environment, we need business transformation to better meet the escalating consumer needs. The decision to file for bankruptcy protection is very tough for us, but we think it's a business-to-business The best way to make the necessary changes, 'Knights said.
'Our new, smaller, more interactive store is a very good place to shop and operates very well, and at the same time our new website has seen significant growth, and the business of online off-line pick-and-place is also going well However, our old warehouse stores are no longer suited to the retail environment, and the business has been losing money in recent years, so we need to take tough steps to make the transition as fast as possible.
In fact, the reorganization of Toys R Us is at a difficult time for toy retailers Christmas, according to an industry report, the British toy retail sales in November this year, down 10%.
It is understood that Toys R Us U.S. headquarters filed for bankruptcy protection petitions in September due to its heavy debt of up to 5 billion U.S. dollars, while Toys R (USA), due to changes in consumer shopping habits and pressure from other competitors, Us UK has also struggled in the same way as its parent company, which has been losing money for seven years at Toys R Us.