It's official: Toys "R" Us, Babies "R" Us closing all stores - WFMJ.com News weather sports for Youngstown-Warren Ohio

Senator urges company to make good on gift cards

It's official: Toys "R" Us, Babies "R" Us closing all stores

Posted: Updated:

21 News reported it earlier this week.  Now it's official.

A 124-page filing in U.S. Bankruptcy court outlines plans to shut down and liquidate the remaining 735 Toys “R” Us and Babies “R” Us stores.

Included in that number are Toys “R” Us stores in Boardman and Niles and a Babies “R” Us in Boardman.

City insurmountable financial circumstances, Toys “R” Us said that the most recent holiday sales came in well below the worst-case projections.

Factors behind the decision include supply chain delays, competition from Amazon, Walmart, and Target, as well as a greater than expected decline in toy and gift card sales following the decision to file Chapter 11 bankruptcy.

The company says to remain open, they would expect to burn $50 million to $100 million per month.

The company says it has issued notices of termination to U.S. Employees consistent with state and federal Worker Adjustment and Retraining Notification Act., which generally require a 60-day notice period.

Toys “R” Us says it has worked with their lenders to develop a budget that ensures that all employees will continue to be paid for no fewer than 60 days.

The company has asked the court to authorize going out of business sales at all of the stores.

U.S. Senator Charles Schumer is urging the Federal Trade Commission to step in to ensure consumers have time to get cash back for unused gift cards.

“I am urging the company to redeem outstanding gift cards for cash so they are not as worthless and unwanted as a lump of coal in a stocking,” said Senator Schumer.

A copy of Thursday's court filing may be seen here

  • More From wfmj.comHot ClicksMore>>

  • Catholics consider withholding donations amid scandals

    Catholics consider withholding donations amid scandals

    Sunday, August 19 2018 7:09 PM EDT2018-08-19 23:09:46 GMT

    Catholics across the U.S., shaken by the latest revelations of priests sexually abusing children, are considering withholding or reducing their donations to their local churches as they look for ways to express their anger.

    More >>

    Catholics across the U.S., shaken by the latest revelations of priests sexually abusing children, are considering withholding or reducing their donations to their local churches as they look for ways to express their anger.

    More >>
  • White House called toxins contamination 'PR nightmare'

    White House called toxins contamination 'PR nightmare'

    Friday, August 17 2018 8:00 PM EDT2018-08-18 00:00:57 GMT
    (AP Photo/Matt Rourke). In this Aug. 1, 2018 photo, Lauren Woehr hands her 16-month-old daughter Caroline, held by her husband Dan McDowell, a cup filled with bottled water at their home in Horsham, Pa. In Horsham and surrounding towns in eastern Penns...(AP Photo/Matt Rourke). In this Aug. 1, 2018 photo, Lauren Woehr hands her 16-month-old daughter Caroline, held by her husband Dan McDowell, a cup filled with bottled water at their home in Horsham, Pa. In Horsham and surrounding towns in eastern Penns...
    Toxics used in nonstick cookware, fast-food wrappers and much more are turning up in public water systems in dozens of states.More >>
    Toxics used in nonstick cookware, fast-food wrappers and much more are turning up in public water systems in dozens of states.More >>
  • Outdoor fun dwindles as smoky haze hangs over California

    Outdoor fun dwindles as smoky haze hangs over California

    Tuesday, August 14 2018 1:03 PM EDT2018-08-14 17:03:07 GMT
    (AP Photo/Lorin Eleni Gill). The city of Berkeley, Calif., sits in a dull, smoky haze Wednesday, Aug. 8, 2018. The air quality has hit unhealthy levels in cities miles away as California's largest wildfire ever burns to the north.(AP Photo/Lorin Eleni Gill). The city of Berkeley, Calif., sits in a dull, smoky haze Wednesday, Aug. 8, 2018. The air quality has hit unhealthy levels in cities miles away as California's largest wildfire ever burns to the north.
    No major wildfires are burning near Sacramento but for two weeks a dull haze and the faint smell of smoke from distant blazes has blanketed California's capital region.More >>
    No major wildfires are burning near Sacramento but for two weeks a dull haze and the faint smell of smoke from distant blazes has blanketed California's capital region.More >>
Powered by Frankly
All content © Copyright 2000 - 2018 WFMJ. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms