Bankruptcy Closes Toys R Us Stores
A beloved childhood icon that brought warm memories during our childhoods will be no more by the end of 2018. Toys R Us filed bankruptcy in September of 2017 citing huge losses that caused an inability to answer debt payments by the toy seller. In both a sad and slightly worrisome announcement this week, Toys R Us is closing all of its stores due to bankruptcy amid financial problems for the big box retailer. Thanks to bankruptcy, California, along with several other states will be losing the long-lasting legacy. The Sacramento Area alone has 10 Toys R Us or Baby R Us locations that will close soon.
Stores Closing Due to Bankruptcy
The Toys R Us on Folsom Blvd. at the Folsom Premium Outlets will be shutting down due to bankruptcy liquidations affecting the entire country. Not only Folsom will be affected the bankruptcy, as the company is also closing down stores in Sacramento, Citrus Heights, Elk Grove, Roseville, Yuba City, and Stockton.
Stores at the following locations will soon be shut down for good:
- 7800 Greenback Lane, Citrus Heights
- 8507 Bond Road, Elk Grove
- 2785 E Bidwell St, Folsom
- 13000 Folsom Blvd (Folsom Premium Outlets), Folsom
- 6780 Stanford Ranch Road, Roseville
- 1248 Galleria Blvd, Roseville
- 1919 Arden Way, Sacramento
- 718 W Hammer Lane, Stockton
- 10640 Trinity Pkwy, Stockton
- 700 A W Onstott Road, Yuba City
- Nationwide Chapter 11 Closures
Toys R Us is already in the process of shutting down its stores in Folsom. Bankruptcy has also forced the financially troubled company to close down its remaining 150 stores, 25 of which are located in California. Making matters worse for employees of the company, the company operates a distribution center employing around 88 people which will close in Stockton. Bankruptcy was thought to be a saving grace for Toys R Us and a way to refinance while remaining in business, however, the majority of companies don't make a successful exit in Chapter 11 Bankruptcy.
Bankruptcy attorneys have stated that Toys R Us is expected to stay open at least another 2 months. Per the United States WARN Act, Toys R Us will continue to pay its employees through the next 60 days.
Chapter 11 Bankruptcy
Chapter 11 Bankruptcy is meant as a way to promote business and economic health for American companies. Consequently, if your organization needs an expert to examine your financial situation and advise on how to eliminate business debt, contact a Folsom bankruptcy attorney today to discuss your options.