Tag: Toys “R” Us

Amazon didn’t kill Toys ‘R’ Us. Here’s what did
Unemployment

Amazon didn’t kill Toys ‘R’ Us. Here’s what did

And that meant an unpleasant shopping experience that doomed the chain.
The company told employees Wednesday that it would close or sell its US stores after 70 years in business.
Last year toymakers Mattel (MAT) and Hasbro (HAS) each sold about $1 billion worth of their toys at Walmart, more than twice as much as what they sold through Toys “R” Us.
And like most retailers, Toys “R” Us also lost sales to online rivals such as Amazon that offered lower prices and quick shipping.
When Toys “R” Us filed for bankruptcy in September 2017, it disclosed it had about $5 billion in debt and was spending about $400 million a year just to service that debt.
Brandon said in a filing last fall that the bankruptcy process would allow it to invest $65 million in its stores. “Better employees make for happier customers,” Brandon said in the filing.
Despite sharply declining sales, Toys “R” Us was also extremely late to the game in closing stores.
At the time of its bankruptcy filing, the chain had 1,697 stores — more than it had ever had.
On Wednesday, hours before announcing the decision to close its US operations, it said it would close the last 75 UK stores.

31,000 Toys ‘R’ Us employees: No job and no severance
Unemployment

31,000 Toys ‘R’ Us employees: No job and no severance

The news that Toys “R” Us is closing might conjure up wistful childhood memories for shoppers.
But for the chain’s 31,000 U.S. employees, it means they’re out of a job. “When they announced 182 stores closing and my store wasn’t on the list, I thought I’d be OK,” said one Florida employee who spoke to CNN.
That employee, a 39-year old mother of three boys, said she’s worked at the store for 12 years and hoped to remain there until her youngest, now 8 years old, was grown. “They loved it,” she said.
Workers were promised 60 days pay, which is required under federal law, and they’ll receive that pay even if they don’t work the full two months.
About 1,100 people work at the company’s headquarters in Wayne, N.J., according to the bankruptcy filing, and about 30,000 at the store’s remaining 791 U.S. locations.
Employment in the retail sector suffered a net decline of 29,300 jobs last year, according to the Labor Department.
But even with so many stores closing, it’s tough for retailers to find help. “We’re actually seeing a competitive job market in retail that really is unprecedented,” said Portell.