Toys ''R'' Us to shutter 146 childrenswear stores

Toys "R" Us Inc, the US toy retail giant, on Monday revealed plans to close down its entire Kids "R" Us childrenswear chain as it posted a higher-than-expected third-quarter loss which forced the group to cut its annual profit forecast.

The Wayne, New Jersey-based company said it expected about 3,800 jobs to be lost when it closes its 146 Kids "R" Us stores and its 36-store educational toy chain Imaginariums at the end of January 2004. Toys "R" Us will also close three distribution centres that support the two chains. The group''s CEO John Eyler said he decided to close the businesses in view of the "accelerated deterioration in the financial performance2. The Kids "R" Us chain reported a 11.4 per cent drop in like-for-like sales and a 13 per cent fall in overall sales for the third quarter ended 1 November 2003.

Mr Eyler said that the company will remain committed to the clothing business within its Toys "R" Us, Babies "R" Us and Geoffrey stores as well as its website and is also considering to reopen 15 of the closing Kids "R" Us stores as Babies "R" Us stores. The group''s total sales for the third quarter increased by 2.2 per cent to $ 2.3bn (? 2bn) thanks to the weak dollar. The group''s net loss deepened to $ 38m from $ 28m in the same quarter last year. Full-year profits will fall short of forecasts, Toys "R" US said.