Sadie Keljikian, Express Trade Capital
Toys R Us continues to struggle, despite its attempts to restructure and rebuild since filing for Chapter 11 in September.
The once-dominant retailer is planning on closing 175 of its locations in the US, nearly 20% of its 881 operational locations as of October.
Soon after Toys R Us filed for Chapter 11, toy manufacturers restricted or cut holiday shipments and reined in payment terms, compounding the retailer’s financial problems and complicating attempts to recover over the crucial holiday season.
In December, the retailer held a conference call and reported that prior to the bankruptcy, sales had already decreased by 7%. Later in the month, Bloomberg reported that sales had since dropped by 15% year-over-year.
As of now, the toy chain’s future looks bleak, but only time will tell.
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