Toys R Us has laid out plans for a turnaround strategy as it prepares to enter bankruptcy, which could see it return to public ownership.
The plan, dubbed “Project Sunrise”, will see the toy retailer revamp its older larger suburban stores pushing to improve experience and customer service.
According to chief executive David Brandon this involves offering children the opportunity to try out toys in store.
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“We want toys out of the box and into the hands of kids,” he said.
“We know we need to do it. We haven‘t had the capital to do it.”
It will also involve shrinking some of its other stores and closing those which aren‘t turning a profit, while opening smaller stores in more urban areas.
The chain‘s 64,000 workers are also set to get a pay rise under the new plans, alongside reduced delivery times and improved customer service.
Brandon also confirmed that once the chain completes the bankruptcy process, it will no longer be owned by Bain Capital, KKR & Co and Vornado Reality Trust.
Creditors could convert their debt into equity with a public sale, which has reportedly not been ruled out.
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