A new report claims that Toys R Us is considering closing up to 200 of its 879 locations in the U.S.
According to this report, the toy retailer is looking to close at least 100 stores. These claims are in direct conflict with statements made by company CEO Dave Brandon in September. He said then that the company would continue to open new stores and wouldn’t be pulling back its business.
While Brandon may have truly meant what he said back in September, the Christmas season hasn’t been nice to Toys R Us. Recent reports claim that sales are down roughly 15% this year when compared to the holiday shopping season in 2016.
It’s possible that Toys R Us is seeing lower sales during this Christmas season due to its bankruptcy filing in September. This may be scaring away potential customers and pushing them toward rival toy retailers. Both Hasbro, Inc. (NASDAQ:HAS) and Mattel, Inc. (NASDAQ:MAT) are already blaming the bankruptcy for lower sales this season.
Toys R Us hasn’t denied the claims that it will be closing down some locations. However, it says that the recent figures are “premature and likely to be inaccurate.” The company notes that it will do what is in “the best interests of our business,” reports Bloomberg.
Toys R Us has been trying to ease customers’ concerns this holiday season, but the recent reports show that it likely couldn’t do that. The company pointed out that the bankruptcy didn’t mean it was shutting down. It also noted that its online stores were still open, but it appears this wasn’t enough.
As of this writing, William White did not hold a position in any of the aforementioned securities.
