______________________________________________________________________________
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
_______________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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Date of Report (Date of earliest event reported):
February 1, 1996
TOYS "R" US, INC.
(Exact Name of Registrant as Specified in Charter)
Delaware 1-11609 22-3260693
(State or Other (Commission (IRS Employer
Jurisdiction of File Number) Identification No.)
Incorporation)
461 From Road, Paramus, New Jersey 07652
(Address of Principal Executive Offices)
Registrant's telephone number: (201) 262-7800
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Item 5. Other Events.
This report relates to certain announcements made by the
Registrant in the Press Release, dated February 1, 1996, filed as an exhibit
hereto and incorporated by reference herein.
Item 7. Financial Statements, Pro Forma Financial Information
and Exhibits.
(c) Exhibits.
20. Press Release, dated February 1, 1996.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
Dated: February 1, 1996
TOYS "R" US, INC.
By: /s/ Louis Lipschitz
Louis Lipschitz
Senior Vice President-Finance
and Chief Financial Officer
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INDEX TO EXHIBITS
Exhibit Electronic (E)
No. Description or Paper (P)
____________________________________________________________________
20 Press Release, dated
February 1, 1996 . . . . . . . . . . . . . . . . . . E
____________________________________________________________________
FROM: Lawrence A. Rand Louis Lipschitz
Kekst and Company Toys "R" Us, Inc.
437 Madison Avenue 461 From Road
New York, NY 10022 Paramus, NJ 07652
(212) 593-2655 (201) 368-5548
FOR: Toys "R" Us, Inc. FOR IMMEDIATE RELEASE
(NYSE: TOY)
TOYS "R" US COMMENTS ON 1995 RESULTS
--Company to Restructure Its Worldwide Operations;
To Take $270 Million Charge In Fourth Quarter--
1996 RESULTS TO BENEFIT FROM ACTIONS
PARAMUS, NEW JERSEY, FEBRUARY 1, 1996--Toys "R" Us, Inc. said today that it
would restructure its worldwide operations in an action that should make the
Company significantly more profitable in 1996 and the future. The Company
said that it will take a one-time charge of approximately $270 million, after
taxes, to cover the cost of strategically repositioning the merchandise
assortment that will be offered at the Company's toy stores, closing 25
stores and consolidating 3 distribution centers.
Michael Goldstein, Chief Executive Officer of Toys "R" Us, said "As a result of
this move, the Company should be in a stronger position to generate
significant earnings gains in 1996 and, more importantly, it should improve
the Company's growth trends over the longer term."
Mr. Goldstein noted that based upon preliminary results 1995 operating profit,
before the restructuring charge, should be approximately $590 million for the
fourth quarter and approximately $740 million for the full year ending
February 3, 1996.
The restructuring should position the Company for more profitable growth,
improve the Company's return on equity and increase its cash flow. The
charge will include costs relating to:
* The strategic repositioning of our inventory assortment by streamlining
the number of items carried,
* The closing of 3 Toys "R" Us and 12 Kids "R" Us stores in the U.S.A.,
and the franchising or closing of 10 toy stores in Europe,
* The consolidation of 3 distribution centers and 7 administrative
facilities in the United States and Europe,
* The Company's decision to elect early adoption of FASB No. 121,
"Accounting for the Impairment of Long-Lived Assets and For Long-Lived
Assets to be Disposed Of" in the amount of $24 million.
Mr. Goldstein said, "These efforts will generate excitement in our stores,
sustaining our leadership position as the world's dominant child-related
retailer. Although it is difficult to estimate, we believe that between the
reduction in our cost structure and the benefits anticipated from
repositioning our merchandise offerings, the restructuring should provide at
least a $50 million benefit to operating earnings in 1996 and a greater
amount in 1997 and thereafter.
Since the implementation of the restructuring will have a positive cash impact,
our financial condition will remain excellent. We will continue to have one
of the strongest balance sheets in the retailing industry.
<PAGE>
We are very excited about our three new U.S.A. store concepts. Our
revolutionary new toy store design, which we call "Concept 2000", will be
unveiled this year in approximately 12 locations, three of which will be
retrofits of existing stores. Our new division, Babies "R" Us, will open
about 10 locations in 1996, with a brand new store design specially tailored
to the juvenile market. Our new Superstore design, combining all of the "R"
Us concepts under one roof within approximately 90,000 square feet, will be
showcased in 2 or 3 locations, one of which is a retrofit of an existing
Toys "R" Us and Kids "R" Us location. Including the Concept 2000 format, we
will open approximately 35 new toy stores and approximately 10 new Kids "R"
Us stores in the United States this year.
Internationally, we have recently signed franchise agreements for Indonesia,
Scandinavia, South Africa and Turkey. This will allow us to open approximately
55 stores, including 20 franchise stores. We are continuing to pursue
additional franchise opportunities to accelerate the market presence of Toys
"R" Us throughout the world."
Mr. Goldstein further stated, "The restructuring plan announced today will have
a positive impact on earnings in 1996 and beyond. After reviewing our market
position, our competitive environment and the growth potential of our new and
continuing businesses, we are confident that we have formulated a strategic
plan that will increase shareholder value."
Toys "R" Us is the world's largest toy specialty retailing chain currently
operating 653 toy stores in the United States, 337 international toy stores,
including franchised stores, and 213 Kids "R" Us children's clothing stores.
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