Stores Closing Part Of Toys R Us' Long-Term Plan: Report

WAYNE, NJ — Expect Toys R Us stores to close after Black Friday and the holiday shopping season, despite the company saying in its bankruptcy filing that the vast majority of its 1,600 retail locations are profitable.

The global retailer announced Monday it filed for Chapter 11 protection in federal court in Virginia.

Eric Snyder, chairman of corporate restructuring department of Wilk Auslander, a New York law firm, said in a NorthJersey.com report that the fact that Toys R Us has not announced any store closings yet shows that the Wayne-based company will contact all of its landlords and tell them if they don't reduce the rent or improve the terms of their leases, "we're going to leave."

There are 31 Toys R Us and 26 Babies R Us stores in New Jersey.

Toy companies may have forced Toys R Us' hand into filing for bankruptcy. According to the NorthJersey.com report, citing the company's bankruptcy filing, 40 percent of company's toy vendors refused to ship merchandise unless their outstanding bills were paid or they received cash on delivery or cash in advance.

Mattel is owed $135.6 million by Toys R Us, according to NorthJersey.com.

Toys R Us announced that new seasonal products will be offered ahead of the holiday shopping season and inventory levels will be "maintained" and products will be delivered in a timely fashion.

Brandon said in the announcement Toys R Us will restructure $5 billion of long-term debt so it can strengthen itself against the competition.

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