Toys R Us hiring holiday workers despite bankruptcy
Toys R’ Us has filed for bankruptcy right before the holiday shopping season, becoming the latest brick-and-mortar retailer to fall victim to the growth of e-commerce and discount stores. More than 300 companies have filed for bankruptcy in 2017 so far, here’s a look at the most significant casualties.
Toys R Us on Thursday said it would hire thousands of part-time holiday workers, just days after the toy retailer filed for Chapter 11 bankruptcy.
While Toys R Us did not provide a specific national hiring target, a company spokesperson told FOX Business that the number “remains unchanged” from last year, when it purportedly hired about 40,000 workers. The company says it will hire roughly 10,000 part-time workers in five key markets, including New York, Los Angeles and Chicago, as well as more than 2,400 workers at a DHL Supply Chain fulfillment center in Groveport, Ohio.
The declared goals for regional hires are about 10% lower than the number Toys R Us announced in 2016, the Bergen Record reported. Aside from traditional roles like cashier and sales associate, the company is hiring “toy demonstrators” that will unbox and showcase toys for shoppers.
Facing a long-term debt of more than $5 billion and a tough sales environment, Toys R Us filed for Chapter 11 bankruptcy on Tuesday in a move that company CEO Dave Brandon said would provide “greater financial flexibility to invest in our business, continue to improve the customer experience in our physical stores and online, and strengthen our competitive position in an increasingly challenging and rapidly changing retail marketplace worldwide.”
Toys R Us said its 1,600 store locations will operate “as usual” after the filing, with no change to payroll or organizational structure. The company is set to receive more than $3 billion in new financing ahead of the holiday season.
This story has been updated.