After six decades, the once successful toy store chain Toys R Us is officially closing all it’s doors for good.
According to The Washington Post, the company announced that it is closing or selling all of their U.S. stores. While they previously announced the closure of 182 stores, it appears that was only the beginning.
This closure will affect as many as 33,000 jobs, and it comes six months after the company filed for bankruptcy. Toys R Us had been struggling to pay off almost $8 billion in debt, most which came from a 2005 buyout.
Although the company had initially told its employees store closures would occur over time, it seems their debt was too great to keep going. The company is also closing all 100 of their U.K. stores as well.
While Toys R Us used to dominate the market, it lost its footing in recent times. Stores like Target and Walmart, along with online retailers like Amazon, increasingly gained dominance by selling toys at lower prices. Even the recent holiday season was not enough to help the company stay afloat, despite similar retailers racking up their largest gains in years.
Kelly O’Keefe, a professor of brand management at Virginia Commonwealth University, further explained their decline, saying:
“We know that customers are willing to pay more for an enjoyable experience — just look at the lines at Starbucks every day — but Toys R Us has failed to give us anything special or unique. You can find more zest for life in a Walgreens.”
There’s still a chance other companies could come in and buy the company, but we’ll have to wait and see.
Head right here to learn more. Also, let us know in the comments if you’re sad to see Toys R Us close after all these years.