Toys 'R' Us closure leaves void for suppliers, endangers 30,000 jobsBy TRACY RUCINSKI and ABINAYA VIJAYARAGHAVAN
March 15. 2018 11:13PM
Iconic toy retailer Toys ‘R’ Us Inc. will shutter or sell its stores in the United States after failing to revamp its struggling business, putting 30,000 jobs at risk and leaving a void for vendors who supplied the company with $11 billion worth of goods a year.
As shoppers flock to Amazon and children choose smartphones and screens over toys, Toys ‘R’ Us has struggled to boost sales and service debt following a $6.6-billion leveraged buyout by private equity firms in 2005.
Toys ‘R’ Us plans to liquidate inventory at 735 U.S. stores, including Babies ‘R’ Us locations, by the end of this year. The company’s New Hampshire stores are in Manchester, Concord, Nashua and Salem.
The wind-down follows a bruising holiday season, when the company failed to stay competitive and sales came in well below projections. The quarter accounts for 40 percent of its annual net sales.