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The global toy store, Toys "R" Us, is in the middle of one of the biggest retail shutdowns in U.S. history, but north of the border, the company, says business is operating as usual.
Yesterday, Toys "R" Us officially announced plans to liquidate inventory in all 735 of its U.S. stores.
The closures are expected to begin soon, however, the Canada-based stores will remain open at this time.
When Toys "R" Us filed for bankruptcy in September 2017, it filed under its U.S. and Canadian subsidiary.
However, in January 2018, the company announced the 82 stores in Canada would not be impacted by the U.S. closures.
Not only would the northern store's doors remain open, but Toys "R" Us said it would continue to honour all of its customer loyalty programs, including exchanges, Baby Registry, warranty, and gift cards.
The company says its Canadian operations are autonomous from U.S. operations and continues to be a stable and profitable market leader in Canada.
"Since the initiation of our September court proceedings, our primary focus has been reimagining our business with you, our customers in mind and ensuring a normal course of operations," stated Melanie Teed-Murch, president of Toys "R" Us and Babies "R" Us Canada.
While Canada appears safe for now, other international stores could be headed for the chopping block soon.
"We are pursuing what is called a 'going concern' reorganization and a sale process to find buyers that will continue to run our Canadian business and operations in Asia and Central Europe, including Germany, Austria and Switzerland," stated a spokesperson for Toys "R" Us on Thursday.
International stores in Australia, France, Poland, Portugal and Spain are considering their options in light of this announcement and may be forced to sell.
The toy store first opened in Canada in 1983. It also operates an e-commerce store called Babies "R" Us, and has recently expanded stores in Langley and Barrie, Ont.
Lazard and Alvarez & Marsal are advising the Company, and Goodmans LLP and Kirkland & Ellis LLP are acting as legal counsel to Toys "R" Us Canada.