Toys R Us intends to close about 20% of its stores as part of its plan to emerge from Chapter 11 bankruptcy, according to a report in The Wall Street Journal.
Citing a court filing late on Tuesday, the newspaper said the firm’s closures of up to 182 stores are scheduled to begin next month, with the majority of stores closing mid-April.
The decision about whether to close all of the stores will depend on landlord negotiations, and whether they can strike a better deal on lease terms and rent reductions, the paper added.
It said a number of locations will be converted into co-branded Toys R Us and Babies R Us stores.
Last month, Toys R Us reported a disappointing holiday quarter, as revenue fell 7.5% and same-store sales dropped 7%.