The toy store chain known as Toys R Us is planning to shutter roughly 180 stores across the United States or about one-fifth of its U.S. store fleet, in a bid to restructure the company and emerge from bankruptcy protection.
The closures still need court approval, but management is planning to shut those locations beginning in early February and running through mid-April.
"The reinvention of our brands requires that we make tough decisions about our priorities and focus," Chairman and CEO David Brandon wrote Tuesday in a letter to customers.
"The 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."
The New Jersey-based retailer added that a number of its existing locations will be co-branded as Toys R Us and Babies R Us stores.
Prior to the holiday shopping season, Toys R Us filed for bankruptcy protection down south as its sales were waning and debt was piling up. The toy chain faces increased competition from the likes of Amazon (NASDAQ: AMZN), Wal-Mart (NYSE: WMT), and Target (NYSE: TGT), and has struggled meeting consumers' needs online.
Toys R Us has said it's focused on improving the in-store and online shopping experience and is also planning to revamp its loyalty program to appeal to more consumers.
Toys R Us' Canadian president, Melanie Teed-Murch, said in a separate memo that the 83 locations in Canada won't be impacted by Tuesday's news.
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