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U.S. NEWS Friday 16 March 2018

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Without Toys R Us, 30,000 jobs, a black hole for toy makers

When Toys R Us initially an- "If you want something like Toys R Us had about 60,000
nounced it was filling for a mainstream toy shop, full-time and part-time em-
bankruptcy protection last then Toys R Us is the only ployees worldwide last
year, the Asian venture said place you can go," said year. “We worked as hard
it was not affected and op- Ching-yng Choi, whose and as long as we could to
erated as a separate legal home and office are both turn over every rock,” Bran-
entity independent of other within walking distance of don told employees.
Toys R Us businesses around Toys R Us shops. But in his address, Brandon
the world. "Basically either it's Toys R took shots at shoppers and
In Hong Kong, where Toys Us or you go to specialized vendors who cut back on
R Us has 15 stores, parents and very expensive toy their support for the chain
said there were few other shops that sell, for example, in recent months. “I believe
Shoppers walk into a Toys R Us store, in San Antonio. Toys R Us's choices in a retail market wooden toys that come that all of them will live to
management has told its employees that it will sell or close all dominated by a few big from very far away coun- regret what is happening to
of its U.S. stores. players. tries like in Europe," she said.
(AP Photo/Eric Gay) our company,” he said.q

By ANNE D'INNOCENZIO still be running for the next
NEW YORK (AP) — The de- couple of weeks in case
mise of Toys R Us will have a there's a buyer for it. Work-
ripple effect on everything ers in the U.S. will get paid
from toy makers to con- for the next 60 days if they
sumers to landlords. show up for work, but after
The 70-year-old retailer that all benefits and pay
sought court approval will be cut, Brandon told
Thursday to liquidate its re- employees at the meet-
maining 735 stores, elimi- ing, according to the re-
nating the jobs of some cording. Some workers will
30,000 employees while be asked to stay longer to
spelling the end for a chain help with the liquidation.
known to generations of The company said that gift
children and parents for its cards will be honored for
sprawling stores and Geof- the next 30 days. It will not
frey the giraffe mascot. accept returns once the
The closing of the com- liquidation sales start.
pany's U.S. stores over the It's likely to also liquidate
coming months will finalize its businesses in Australia,
the downfall of the chain France, Poland, Portu-
that succumbed to heavy gal and Spain. It's already
debt and relentless trends shuttering its business in
that undercut its business, the United Kingdom. That
from online shopping to would leave it with stores
mobile games. in Canada, central Europe
And it will force toy mak- and Asia, where it could
ers and landlords who de- find buyers for those assets.
pended on the chain to Toys R Us Asia Ltd. has more
scramble for alternatives. than 400 retail outlets in Bru-
CEO David Brandon told nei, China, Hong Kong, Ja-
employees Wednesday pan, Macau, Malaysia, Phil-
the company's plan is to ippines, Singapore, Taiwan
liquidate all of its U.S. stores, and Thailand. It is a Hong
according to an audio re- Kong-based joint venture
cording of the meeting ob- with the Fung Group, which
tained by The Associated owns a 15 percent stake. It
Press. also controls Asian sourc-
There is still some hope. ing giant Li & Fung, a major
Toys R Us will try to bundle supplier to Western retailers
its Canadian business, with like Wal-Mart.
about 200 U.S. stores, and A Fung spokesperson did
find a buyer. The compa- not immediately reply to a
ny's U.S. online store would request for comment.