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Toys "R" Us Might Return This Holiday Season

toysrus jun24 lt

Toy retailer Toys "R" Us, which shut down U.S. operations in June 2018, is said to be returning to the market, with plans of opening about half a dozen U.S. stores and an e-commerce site before the Christmas holiday season 2019.

The proposed new stores in the US are to be of 10,000 square feet, roughly the third of the size of the big box brand that closed last year. The stores are expected to have play areas and birthday party areas for kids.

Toys "R" Us had filed for Chapter 11 bankruptcy protection in September 2017 after it began to lose its share in the toy market following the rise of mass merchants and online retailers such as Amazon.com.

The retail chain announced in January 2018 that it would liquidate and close up to 182 of its stores in the U.S. The company owned 739 stores in the U.S. in 2018.

Later in March 2018, the company said it would close all of its U.S. and British stores. It wound up the U.S. locations in June 2018 after 70 years of operations. Retailers such as Walmart, Target and Amazon.com filled the gap in the toys market after the exit of Toys "R" Us.

However, in October 2018, the lenders of Toys "R" Us, led by Solus Alternative Asset Management and Angelo Gordon, announced its plans to re-launch the U.S. Toys "R" Us retail business in the future, citing the value of its brand.

Toys "R" Us made its presence during the holiday shopping season through in-store toy display after its lenders partnered with Kroger. On January 20, 2019, the company emerged from bankruptcy as Tru Kids.

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