Lansdowne Centre was once again faced with an all too familiar sign of the times Tuesday after another big-box retailer announced it is facing financial difficulties.
Toys R Us filed for bankruptcy in the U.S. and Canada, leaving the Richmond store’s future up in the air.
However, the retail toy giant said it intends to keep its stores open and running the business “as usual.” Meanwhile, Lansdowne Centre’s marketing manager Bronwyn Bailey told the Richmond News the mall has not had any communication with Toys R Us following the announcement.
Melanie Teed-Murch, president of Toys R Us and Babies R Us Canada, said in a news release that the company will be “restructuring” its finances while proceeding under the Companies’ Creditors Arrangement Act, which is analogous to America’s Chapter 11 bankruptcy proceedings.
The Associated Press reported the company has $5 billion of debt. Toys R Us stated Tuesday that it has received a commitment for over $3 billion in debtor-in-possession (“DIP”) financing from various lenders.
Teed-Murch insisted all gift cards, warranties and returns and customer loyalty programs, including the baby registry “will continue to be honoured as normal.”
The company said it is forging ahead with new, in-store experiences, such as: interactive stations for kids; mobile pay; free, in-store pick up within one hour; and expanded ship-from-store options.
Such measures are thought by financial analysts to be in response to Toys R Us competing with online shopping meccas such as Amazon and EBay.
There are 82 Toys R Us stores in Canada, with one in Langley recently opening in July.
Should Toys R Us eventually close shop at Lansdowne, it would be added to a growing list of big retailers who have, over the years, failed to keep a foot in Richmond.
The mall has a large empty space where Future Shop used to be and its southeast wing is vacant until T & T Supermarket moves into the bottom floor next summer.
The 64,000-square-foot top floor remains vacant but Bailey said the mall is looking at lease options. The space was formerly a Target, which quickly flopped in April 2015 after a year of operating. Prior to Target was a Zellers and before that the once-iconic Eaton’s.
The 50-acre Lansdowne Centre site is slated for huge residential and commercial development over the next few years, although it’s understood the early phases will be built around the existing mall.
Richmond Centre is also in the early stages of redevelopment process. In February 2015 the city lost Sears at Richmond Centre although it gained a Walmart at Central at Garden City in October 2016.
