Will Toys ‘R’ Us’ Bankruptcy Affect Stores in Danbury and Putnam County?
You may have already heard that earlier this week, the mega giant Toys "R" Us filed for bankruptcy protection in Federal Court. Will this have any affect on their stores in Putnam or Dutchess County?
Despite the fact that the company announced on Monday that it will be filing Chapter 11 bankruptcy protection in Federal Court, all of their stores, including the 11 that they operate in Putnam and Dutchess Counties, will remain open.
There are Toys "R" Us and Babies "R" Us stores in Jefferson Valley, Poughkeepsie, Wappingers Falls, Kingston, Middletown and also in Danbury, Connecticut.
The company will look to first restructure its $5 billion worth of debt. Chairman and Chief Executive Officer Dave Brandon said in a news release:
The move would provide greater financial flexibility to invest in our business and strengthen our competitive position in an increasingly challenging and rapidly changing retail marketplace worldwide.
Now this is something we've all heard before from businesses who file Chapter 11, then a few months later start to close down some of their less profitable locations. The company did, however, release a press statement ensuring that they are going to do their best to keep all stores operating:
We are confident that this financial restructuring is the best path forward to ensure that Toys "R" Us can invest in our business, continue to improve our customers’ experience and strengthen our competitive position.
The company says the restructuring will include them investing $277 million from 2018 until 2021 to convert current locations into side-by-side storefronts dedicated to Toys and its Babies "R" Us brand.
The once giant toy retailer has struggled as of late due to on line competition from Amazon and discounted stores like Walmart.