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• The New York Times reports that Toys R Us “has hired restructuring advisers from the prominent law firm Kirkland & Ellis as it tries to cope with hundreds of millions of dollars of debt coming due, according to two people briefed on the matter … Among the options that the retailer, which is owned by private equity firms, is considering includes filing for bankruptcy … Toys “R” Us must find a way to pay back about $400 million in debt as it tries to increase sales in the upcoming holiday season.”

Bloomberg reports that Gap Inc. plans to close hundreds of Gap and Banana Republic stores around the country, while opening and putting more focus on its Old Navy and Athleta stores.

The rationale is that the company needs to “concentrate on the most promising growth drivers for the company: e-commerce, value-priced products and activewear. Those are all areas where the Gap and Banana Republic brands have struggled. As a result, the company plans to shutter 200 poor-performing locations of those two chains, while opening 270 new Old Navy and Athleta stores.”
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