Toys “R” Us Inc. Chief Executive David Brandon said that the toy retailer will shrink its stores and revamp its bigger outlets through its bankruptcy process, which may end with the company’s return to the public markets, Reuters reported yesterday. Toys “R” Us, the largest specialty U.S. toy seller, filed for bankruptcy on Monday after some of its vendors stopped shipping to them. They were concerned the company would not pay them because of its financial distress, but those worries were put to rest once Toys “R” Us secured bankruptcy financing on Tuesday. Brandon, in detailing Toys “R” Us’ turnaround, dubbed “Project Sunrise” by the company, said that the chain will integrate its online and in-store shopping experiences, adding faster shipping and better technology and customer service. He said the chain’s 64,000 workers would see wage increases, too. Read more.
In related news, Toys “R” Us Inc. said today that it is hiring part-time seasonal workers to staff its stores for the holidays, including for a new position of toy demonstrator, Reuters reported. The move is the clearest sign yet that Toys “R” Us is aiming to capitalize on the key holiday shopping season to emerge from bankruptcy and escape liquidation. The largest U.S. toy chain did not disclose the number of people it planned to hire nationwide, although its announced openings for seasonal jobs in some of the biggest U.S. states exceed 12,000 part-time jobs. The company currently employs approximately 64,000 people. Read more.
What does the future hold for retail bankruptcies? Be sure to attend ABI’s Bankruptcy 2017: Views from the Bench on October 17.
