Toys R Us reportedly planning to close 200 more stores, corporate layoffs

A shopper enters a Toys R Us store in Ohio in a file

A shopper enters a Toys R Us store in Ohio in a file

Struggling retailer Toys R Us will close another 200 stores, in addition to the 182 closures it announced last month, according to a Wall Street Journal report (subscriber story). The toy store chain, based in Wayne, New Jersey, just announced plans last month to close 180 stores and cut 4,500 jobs.

The company that once dominated toy sales in the US has been operating under bankruptcy protection since last fall, when it filed for Chapter 11 under the weight of $5 billion in debt.

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Read the complete Wall Street Journal report here (subscriber content).

The initial round of store closing sales begin in early February with the majority of stores ceasing operations by mid-April.

If the almost 400 Toys R Us closures are realized, it would slash the company's store count in half. It filed for bankruptcy in September 2017, and executives have said they plan to emerge as a more modern retailer before the next holiday shopping season. These closures would be in addition to the announcement in January that roughly 180 USA stores would be shuttered, many of which are already hosting going-out-of-business sales.

Toys "R" Us has struggled with debt since private-equity firms Bain Capital, KKR & Co. and Vornado Realty Trust took it private in a $6.6 billion leveraged buyout in 2005.

Toys R Us announced in January that Upstate New York stores in Amherst, Greece, Glens Falls, Henrietta and Kingston would close.

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