By KVII Staff
AMARILLO, Texas (KVII) - Court documents filed Thursday in the United States Bankruptcy Court for the Eastern District of Virginia confirm a plan to liquidate all Toys R Us stores in the U.S.
The big box retailer filed for Chapter 11 Bankruptcy in September 2017, ahead of the holiday season, but sales came in below projections. One factor sited for the performance included competitors like Target, Walmart and Amazon having lower prices the company couldn't compete with.
According to court documents, it was determined the best way to pay off the debt, was to liquidate the inventory in all of the remaining U.S. stores and "begin an orderly wind-down of the U.S. operations."
On March 14, notices were sent via over-night mail to all Toys R Us employees located in the U.S. to inform them "that they may be terminated 60 calendar days after receiving the notice." The company employs more than 30,000 people nationwide.
In January 2018, the retailer announced a restructuring plan that would close nearly 200 stores nationwide in an effort to cut costs.
The company has requested a hearing to be set for a judge to approve their plan on March 20.
KVII has reached out to Toys R Us for comment but has not received a response.