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user-inactivated  ·  2381 days ago  ·  link  ·    ·  parent  ·  post: Toys R Us files for bankruptcy in US and Canada

That doesn't sound right. If that majority of their stores are profitable, closing them would only hurt their chances at recovery. If I had to guess, it's not their lack of income that's holding them back, it's their inability to pay off their debts. Hence, the filing for bankruptcy.

I mean, if I were running that company, the last thing I'd do is close any stores without a clear game plan and good reasons why. Part of the reason why companies prop up unprofitable stores is to keep competitors at bay, yes, but the other part of the reason is that closing stores is a long and expensive process, especially if you have to cancel leases and contracts. If a store is losing your company only $35k a year for instance, but closing it would cost you $100k, it might be prudent to just hold onto it for another year or so and see if it's possible to turn things around.