Portland Kids ‘R’ Us, 145 others to close

TRENTON, N.J. – Toy and children’s retailer Toys “R” Us Inc. said its third-quarter loss widened due to higher overhead and stagnant sales, and announced plans to close 182 Kids “R” Us and Imaginarium stores, cutting up to 3,800 U.S. jobs. The Kids “R” Us store in Portland is among those to be closed.

The loss reported Monday by the nation’s No. 2 toy retailer behind Wal-Mart Stores Inc. was larger than expected, and Toys “R” Us lowered its earnings forecast. Shares fell $1.22, nearly 10 percent, to $11.52 in afternoon trading on the New York Stock Exchange.

The company will close all 146 of its free-standing Kids “R” Us clothing stores by Jan. 31. It also will shutter all 36 free-standing Imaginarium stores, which feature educational toys, and three distribution centers that serve those divisions. That amounts to 11 percent of its 1,629 stores worldwide.

The changes will bring restructuring and other charges totaling roughly $280 million, most of which will be recorded this quarter. The company said the closures should raise operating earnings about $8 million next year and $20 million a year after that.