Published: Sun, September 24, 2017
Sports | By Nelson Rowe

Toys "R" Us Files for Bankruptcy

Toys

The wage increase is part of a bigger plan to remake Toys" business, a plan that will also include renegotiating store leases and bringing some Babies "R" Us locations under the same roof as Toys "R' Us.

The Canadian arm of the toy giant have been going strong for some time, but recently, Toys "R" Us in the United States filed bankruptcy.

The toy retailer didn't give the total number of seasonal workers it plans to hire, but said it is looking for 3,800 workers in the NY area, 2,400 in greater Los Angeles as well as 2,400 at a warehouse in Groveport, Ohio that is run by DHL.

Michael P. Niemira, chief economist at Retail Economist LLC, said the decision by Toys "R" Us is part of a trend in retail toward higher wages, the result of needing to incentivize workers to take jobs in an unstable industry when unemployment is very low.

Earlier this week Walmart, the nation's largest private sector employer, said that instead of hiring seasonal employees this year it will give its existing part-time employees more hours.

Stores in the U.S. and Canada will continue normal business operations while the company seeks relief through a bankruptcy court in the state of Virginia and a court in Canada.

The New-Jersey based retailer, which employs 64,000 people worldwide, has amassed a $5.6 billion (£3.6 billion) debt mountain as it faces competition from online and discount shops.

"I don't want to grow up, I'm a Toys "R" Us kid". Toys "R" Us Canada says that they will keep all 82 of their stores open throughout the country and announced that they have gotten new financing.

As Toys "R" Us restructures its debt, Brandon told Bloomberg plans to refocus the chain on in-store experiences and spruce up its marketing-beyond using a decades-old commercial jingle, presumably. "For many children, electronics have become a replacement or a substitute for traditional toys", Saunders said.

Despite that mountain of debt, Toys R Us is staying afloat in the USA and Canada thanks to more than $3 billion (£2.2 billion) in financing from a syndicate of lenders. It comes just as Toys "R" Us is gearing up for the holiday shopping season, which accounts for the bulk of its sales. The company said it was "well-stocked as we prepare for the holiday season and are excited about all of our upcoming in-store events".

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