Toys 'R' Us Shuttering 59 Stores
Toys "R" Us is not kidding around. The chain said Wednesday it will close 59 stores in the United States and abroad, restructure operations and take $495 million in charges.
All but nine of the stores to be closed are overseas, mostly in Europe, Toys "R" Us (TOY) said.
In addition, the toy-retailing company said that by next year it will convert 200 of its stores, 75 in the United States, to its new so-called C-3 format, which is supposed to expand selling space by 18 percent and be more "customer friendly."The C-3 format includes enclosed electronics and kids' clothing areas.
In addition, Toys "R" Us will consolidate distribution centers and administrative offices and undertake efforts to clear out excess inventories.
Those measures combined could boost operating earnings "by more than $75 million in 1999, and even more thereafter," said the company's chief executive, Robert Nakasone.
Written By Jeffry Bartash