Toys R Us to announce closure of stores nationwide, according to report

Annie McCormick Image
Tuesday, March 13, 2018
Reports say Toys R Us is going out of business
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Reports say Toys R Us is going out of business: Annie McCormick reports on Action News at 11 p.m., March 12, 2018

According to multiple reports, come Tuesday a big announcement could come down from Toys R' Us regarding shutting down all stores if there isn't a last-minute save to bail them out.

The toy store giant and its companion stores Babies R' Us could all shut down by this week, according to published reports.

In January, stores in Cherry Hill, New Jersey and Exton, Pennsylvania became a part of a growing list slated to close after the retailer entered bankruptcy last year.

"We heard initially they were closing some of the stores and now we're hearing they're closing all of the stores so sales are even higher," said Mary Mancini, of Downingtown.

At stores that have announced that they are closing there are deep discounts, but shoppers said there are also restrictions.

"They said with liquidation they can't do any returns or exchanges," said Mancini.

David Fiorenza, an economics professor at the Villanova School of Business, said online retailers gain an advantage with tax breaks if nationwide closures happen.

Fiorenza said besides hundreds of lost jobs there is an impact of empty storefronts of this size in communities.

"I think you're going to see more retail in the next few years close because of the nature of the Internet," he said. "The bricks and mortar is really the best thing for a community. They're paying real estate tax, they're paying business taxes, the people who are shopping are paying sales taxes, employees are paying wage taxes ..."

In a tweet last week, Toys R' Us said they've seen an amazing outpouring of love and they are still open for business.

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