Image: Screenshot, Feb. 4, 2021. Source: toysrus.com
Toys "R" Us closed its two remaining stores in the U.S. after a failed attempt to relaunch the iconic toy chain, according to multiple reports.
Tru Kids Inc, which owns the Toys "R" Us and Babies "R" Us brands in the US, told The Associated Press that the closures of its stores at malls in Houston, Texas, and Paramus, New Jersey, in January stemmed from the ongoing COVID-19 pandemic.
Like other retail businesses, Toys R Us was hurt by mall closures last year and shifting consumer habits that prompted people to shop at big box stores or online.
In a statement, Tru Kids said, “We made the strategic decision to pivot our store strategy to new locations and platforms that have better traffic. Consumer demand in the toy category and for Toys R Us remains strong and we will continue to invest in the channels where the customer wants to experience our brand."
The two newly-shuttered stores, which opened in fall 2019, had a smaller footprint than the old Toys "R" Us stores and focused more on interactive experiences for brands than selling toys. Ultimately, the plan was to launch about 10 locations in malls across the country.
Toys "R" Us, buckling under pressure from Amazon.com Inc (Nasdaq: AMZN) and several billions of dollars of debt, had liquidated its stores in 2018 after filing for Chapter 11 reorganization. The chain later announced it would close or sell all of its 735 U.S. stores.
Source: Equities News