With its bankruptcy filing late Monday, Toys R Us bought itself $3.1 billion in new financing that will allow it to stock and operate all of its stores through the crucial holiday season. But after the holidays are over, store closings are inevitable, bankruptcy experts say.
Toys R Us, in court documents filed in support of the bankruptcy petition, also indicated that store closings and a shift to smaller stores is part of its long-term plan.
The company said it is “currently performing a detailed review of their real estate portfolio” and is identifying poorly performing stores and locations where the rents are too high in order to reduce the retail square footage.
