Bankrupt Toys R Us is hiring for the holidays

Mindy Sparks
September 23, 2017

The bankruptcy filing of Toys "R" Us, Inc. earlier this week will not affect Asian branches of the worldwide toy seller it has emerged, after the company responsible for the region's operations stressed its financial independence from the USA company.

Toys "R" Us, which filed for bankruptcy protection this week, said on Thursday it is hiring part-time seasonal workers to staff its stores for the holidays, including for a new position of toy demonstrator.

Instead of differentiating itself by creating tons of in-store experiences that bring families into stores for more than just purchases, Toys "R" Us has largely tried to beat Amazon and Walmart at their own games.

Court documents that were filed on Tuesday showed that the Canadian arm of the retailer giant has been performing extremely well over the past few years.

Michael P. Niemira, chief economist at Retail Economist LLC, said the decision by Toys "R" Us is part of a trend in retail toward higher wages, the result of needing to incentivize workers to take jobs in an unstable industry when unemployment is very low.

Toys "R" Us (Asia), a separate business entity to its USA namesake, is a joint venture between Toys "R" Us, Inc. and Hong Kong-based Fung Retailing Ltd. It comes shortly before the retailer gears up for the Christmas holiday season, its most lucrative time of the year.

Toys "R" Us does not plan to close a "disproportionate" number of its more than 1,600 stores across the United States, and aims to add smaller shops in urban areas including Washington, D.C., Boston and Detroit, the company's CEO David Brandon said on Wednesday. Meanwhile, the rest of the company will be restructuring and trying to figure out the secret behind Toys "R" Us Canada's success recently so that they can do the same.

Other reports by Iphone Fresh

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