Toys “R” Us Layoffs in New York: 5 Store Closings, 289 Job Cuts part of Debt Restructuring

Toys "R" Us Layoffs in New York
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Toys “R” Us – Delaware, Inc., has announced that it will close five stores in New York. These store closures are related to the Toys “R” Us bankruptcy filing last September. The Toys “R” Us layoffs in New York will impact about 289 employees.

The company’s Worker Adjustment and Retraining Notification (WARN) reports filed on January 26 say that the layoffs will be effective April 26. The Toys “R” Us WARN notices say that the five stores will close on April 16, and the reason given for the closures is “economic.”

The stores in College Point (51 employees), New York City (75 employees), Queens (60 employees), Yonkers (49 employees), and Westbury (54 employees) will be shuttered.

Toys “R” Us Debt Burden of About $5 Billion Leads to Closures & Layoffs

Toys “R” Us recently announced that it plans to close up to 182 stores  as a part of its bankruptcy-related reorganization. The Toys “R” Us debt, which totals about $5.0 billion, is the main culprit for the store closures.

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When the store chain filed for bankruptcy in 2017, it said in court filings that the stores that a were scheduled to close were not able to meet the company’s performance standards. These store closings represent 20% of Toys “R” Us stores in the United States.

The Toys “R” Us layoffs in New York and other areas of the United States could impact up to 4,500 workers. The company said that some of the affected employees might be relocated to other stores, but how many would be transferred is not clear. The employees who lose their jobs will be paid severance.

Toys “R” Us reported disappointing holiday-season sales in November and December 2017, for which it had hired extra workers ahead of the holidays.

The company’s going-out-of-business sales have been scheduled to run from February to April.

The Toys “R” Us layoffs in New York are a part of the ongoing “retail apocalypse” in the United States as retail stores find it tough to compete with online shops.

Sources

WARN Details Event Number: 2017-0230,” New York State Department of Labor, January 26, 2018.

WARN Details Event Number: 2017-0231,” New York State Department of Labor, January 26, 2018.

WARN Details Event Number: 2017-0232,”New York State Department of Labor, January 26, 2018.

WARN Details Event Number: 2017-0229,”New York State Department of Labor, January 26, 2018.

WARN Details Event Number: 2017-0228,” New York State Department of Labor, January 26, 2018.

Toys ‘R’ Us to Close 182 Stores as Part of Restructuring,” The New York Times, January 24, 2018.

Bankruptcy fallout: Toys R Us closing up to 182 stores,” USA Today, January 24, 2018.

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