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Toys 'R' Us to close up to 182 stores, including 4 in the Pittsburgh area

Post-Gazette

Toys 'R' Us to close up to 182 stores, including 4 in the Pittsburgh area

Toys ‘R’ Us has announced that it plans to close up to 182 stores — one-fifth of its stores in the U.S. -— as it tries to emerge from bankruptcy.

Among the stores slated to close in Pennsylvania are:

▪ William Penn Highway, Monroeville

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▪ Cheryl Drive near Ross Park Mall

▪ Oakspring Road in Washington, Pa.

▪ Valley View Drive in Monaca, Beaver County

Other stores include one in Erie and two in the Philadelphia area.

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Toys ‘R’ Us stores typically employ about 25 people, including full and part-time workers, according to spokesman Joe Contrino. Employees who aren’t able to be transferred to other stores will receive a severance package, he said.

If approved by bankruptcy court, the store closures will begin in early February and continue until mid-April, CEO David Brandon said in a letter on its website. There will be deep discounts at those locations.

Toys ‘R’ Us, squeezed by Amazon.com and huge chains like Walmart, filed for bankruptcy in September. The Wayne, N.J.-based company operates about 879 U.S. stores, according to its last annual report.

Mr. Brandon said the retailer had a challenging Christmas shopping season in the U.S. and overseas. U.S. sales declined about 15 percent this recent holiday-shopping season from a year earlier.

While the bankruptcy hurt customer confidence and disrupted other parts of the business, he said, the company has made operational mistakes that need to be fixed.

“As the leader of this company, I want you to know that we can and will address the gaps in the experience that you may have had when shopping this holiday,” Mr. Brandon said. “My team is already hard at work to make the improvements necessary to ensure that we have the products you want, when, where and how you want them.”

Mr. Brandon’s plan includes revamping a dozen locations to better combine the baby and toy businesses into one co-branded experience, with more such stores coming next year. It will also cut the number of items offered in locations to reduce inventory, according to the memo. That will help simplify the company’s store operations and supply chain.

Toys ‘R’ US isn’t alone. Around three dozen retailers sought bankruptcy protection last year due in large part to a radical shift in consumer behavior, both in where they shop, and what they buy. Some of the companies that have gone under have been small, but there are also big retailers on the list, like Payless Shoe Source, Gymboree Corp. and True Religion jeans.

The Associated Press contributed.

First Published: January 24, 2018, 12:14 p.m.

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