beats headphones review Us Closing More Than 180 Stores
The troubled retailer, which declared bankruptcy in September, is looking to close down as many as 182 outlets across the country, including one in Williamsport,according to a court filing late Tuesday.
The filing Tuesday by the company lawyers said the decision to shut so many stores was prompted by increased competition and a shift by customers toward online shopping.
Related: Retail toughest year a record for store closings
The planned closures, which need court approval, are expected to begin early next month and be mostly completed by the end of April, Toys Us CEO Dave Brandon said in a message to customers posted on the company website.
actions we are taking are necessary to give us the best chance to emerge from our bankruptcy proceedings as a more viable and competitive company, he said.
Several other stores will be converted into co branded Toys Us and Babies Us outlets, Brandon added. are unaffected.
Melanie Teed Murch, president of Toys Us Canada, said in a statement that all 83 locations there would continue operating as usual. in which store closings more than tripled from the previous year to nearly 7,000 closings, setting a record. There was also an increase in the number of store openings, as more successful retailers moved into vacated locations. stores, according to Fung Global Retail Technology, a retail industry think tank.
Much of the problem in traditional brick and mortar stores was because of a shift by consumers to buying more goods online. Foot traffic in stores fell 8% last year, according to Fung.
But the problems at Toys Us predate the growth of online shopping. It suffered from fierce competition and lost market share to fellow big box retailers like Walmart and Target. It has lost nearly $2.5 billion since its last reported an annual profit five years ago, which has left it reeling under $5 billion in debt.
Unlike other retailers that have been steadily closing unprofitable locations, Toys Us continued to add stores right up until recently. It had 1,691 company owned stores as of a year ago, up from 1,622 a year earlier. Still the store closings announcement was not a surprise. CEO Dave Brandon said in December that the company was studying the question of whether to close stores. The bankruptcy process makes it less costly for retailers to break lease on unprofitable locations.