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October 14, 2019Cart

Business

by Westchester County Business Journal
by WCBJ

Babies ‘R’ Us to close in Yonkers

Babies ‘R’ Us in Yonkers will close on April 16, laying off 49 employees, as part of the Toys ‘R’ Us bankruptcy reorganization.

The Yonkers store.

The store at 2700 Central Park Ave. is one of 182 Toys ‘R’ Us stores across the country, including 30 locations in the tri-state region, that are being shuttered as the company cuts costs and restructures. The closed stores account for about 20 percent of the Wayne, New Jersey company’s locations and employ about 4,500 workers.

The Yonkers layoffs were disclosed in a recent state Department of Labor Worker Adjustment and Retraining Notification.

Toys “R” Us filed for Chapter 11 bankruptcy in September, in Richmond, Virginia. It won a ruling to delay its store closure decision until after the usually lucrative Christmas season. But Christmas sales were disappointing, according to news media accounts.

Toys ‘R’ Us is struggling with the same challenges that other brick-and-mortar enterprises face with online sales. Revenue has declined in recent years as Amazon’s toy sales have grown.

The company also is weighted down by $5 billion in long-term debt from the 2005 takeover by private equity firms Bain Capital and Kohlberg Kravis Roberts and by real estate investor Vornado in a leveraged buyout.

Local consumers could find a bright spot in the company’s troubles. The bankruptcy court has approved going-out-of-business sales from February through April.