Financially slumping Toys “R” Us began sales at select locations this week as the company prepares to close about 150 stores – 24 of them in California – according to a press release by one of the firms operating the liquidation sales.
Though the press release does not specify which locations are participating, liquidation will lead to sales of up to 30 percent off merchandise at shuttering Toys “R” Us and Babies “R” Us stores. More than half (84) of the planned closures are Babies “R” Us.
The toy manufacturer filed for bankruptcy in September, with an industry analyst telling Bloomberg the Chapter 11 resulted from “a buildup of financial problems over the past 15 years.” The 150 stores, representing about one-fifth of the company’s U.S. locations, are expected to close by April.
Near Sacramento, a Toys “R” Us in Yuba City and a Babies “R” Us in Folsom are scheduled to go out of business, as well as a handful in San Jose and the Bay Area. The full nationwide list can be seen here.
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The original number of shuttered stores was set at 182, according to a court filing from late January, but the complete list as of Wednesday’s press release contains about 30 fewer.
During last month’s court filing, the company said some locations could avoid closure if they managed to acquire cheaper leases, USA Today reported. That may have been a case for the Babies “R” Us in Stockton (10640 Trinity Pkwy), which appeared on January’s list but is absent from the most recent one.
The press release notes that closing stores will continue to honor gift cards and special credit card deals.
Also on Wednesday, toy manufacturer Hasbro Inc. reported a fourth-quarter sales drop, unexpected given the holiday season and the recent release of a “Star Wars” film.