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

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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

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