Here's what I found....
The Paramus, New Jersey-based retailer said the move, which also entails the consolidation of five store support facilities, is part of its continuing efforts to concentrate its financial muscle on areas of the business that are most productive.
Toys ``R'' Us, as with most other retailers, has suffered lackluster earnings performance since the third quarter of fiscal 2000 as costs to revamp stores and a weakening economy dent consumer confidence.
According to corporate resources Website Hoover's.com, Toys ''R'' Us work force currently stands at 69,000, meaning that the jobs set to go represent about 3 percent of the company's staff.
The company said in a statement it plans to close 37 Kids ''R'' Us stores and 27 Toys ``R'' Us stores.
Those stores were not yet converted to its new ``Mission Possible'' store format, which features themed areas and has stores set up like a racetrack rather than the old supermarket-type layout.
Toys ``R'' Us Chairman and Chief Executive Officer John Eyler said converting these stores, slated for closure, would not have made financial sense.
``In our judgement, the investment of significant capital to renovate these stores to the Mission Possible format would not be prudent,'' he said.
``Rather, we will concentrate our investments on those stores judged most likely to produce superior returns,'' Eyler added.
Early this month Toys ``R'' US said it expects 2001 earnings to meet Wall Street estimates despite a retailing environment which remains challenging.
Donald Trott, an analyst at Jefferies & Co., Inc. said the restructuring was welcome news as it may indeed help the company's earnings performance.
``It's (the restructuring) modestly constructive. We think it adds 8 cents to earnings for the new year starting Feb. 1, and then will add an incremental 6 cents a share to the earnings the year after that. He (Eyler is refining) the company,'' Trott said.
Eyler said about 433 renovated stores had maintained a positive sales gap over those that were unrenovated through the recent holiday shopping season.
Toys ``R'' Us said some Kids ``R'' stores will be migrated into some existing Toys ``R'' Us stores, creating a combo store close to where they are currently located.
Toys ``R'' Us already has 273 combo stores, a number it expects to reach 375 by the end of 2002.
``The strong sales performance and improved profitability of these new formats underscored our decision to close those stores that are performing at levels below our financial objectives,'' said Eyler.
``The closing of these stores will improve our return on assets going forward,'' he added.
The jobs to be cut will be at store and at head office level, Toys ``R'' US said, adding its units will now share the bulk of administrative and financial functions. But merchandising, store operations and marketing activities will continue to be performed by the separate divisions, it added.
Toys ``R'' Us currently operates 1,609 stores worldwide, with 703 of those stores located in the United States.
Its shares close on Friday at $18.75 on the New York Stock Exchange (news - web sites). In the last 52-weeks the stock has fluctuated between $16.81 and $30.98.
