Months after Toys R Us announced that it would liquidate its U.S.-based assets, the toy retailer plans to shutter its brick-and-mortar locations by Friday (June 29). Some locations will close earlier, while the company’s eCommerce operations have been already closed for about three months, Fortune reported.
But a former Toys R Us CEO, Jerry Storch, has reportedly been at work on a plan with bankers and investors to revive the retailer. Those discussions are occurring ahead of a planned bankruptcy auction to sell Toys R Us’ intellectual property (IP).
The news comes as Toys R Us has rolled out sizeable markdowns at its stores as they prepare for closures. The retailer said in a Facebook post that discounts run from 50 percent off to 70 percent off, with some exceptions, USA Today reported.
“The store closure’s timing and discounts will vary, as it depends on how quickly each location sells out of inventory,” Toys R Us spokesperson Amy von Walter told USA Today earlier in June. “I don’t have timing on markdowns as the liquidators are leading this process, but I’d guess that would vary as well.”
Empty aisles and sections of stores are blocked with caution tape and other barriers when inventory does sell out. In addition, merchandise is also moved to the front of the retailer’s brick-and-mortar stores. In terms of closings, one store supervisor told USA Today that the closing date of his store is subject to change — and depends on how quickly all of the store’s merchandise is sold.
After failing to restructure its debt or find a buyer, Toys R Us will either sell or shutter all of its brick-and-mortar stores in the U.S, Reuters reported in March. The retailer had over 700 remaining locations in the U.S., including those under the Babies R Us banner.
Since a leveraged buyout, Toys R Us has been burdened with over $5 billion in debt. Competition from eCommerce retailers such as Amazon and discount stores such as Walmart hasn’t helped the company either.