MCCARREN, Nev. (MyNews4.com & KRNV) -- Toys "R" Us is closing an area distribution center that was completed less than three years ago. A warn act notice was sent to employees, stating that the distribution center will cease operations on March 24 and close for good on June 1, eliminating 56 positions.
An employee, who did not want to go camera, says it has been difficult to go to work, knowing that end is near at the Toys “R” Us facility in McCarran.
Toys “R” Us confirms the closure, citing corporate restructuring to streamline business. In an e-mail, the retail company also said that the closure was “based on the success of our 'ship to store' initiative enabling us to more efficiently leverage inventory and fulfill e-commerce orders in more locations, we have decided to close the McCarran online fulfillment center and absorb its product at nearby stores and existing distribution centers.”
The Toys “R” Us distribution center was completed in September 2011. According to the Northern Nevada Development Authority, the company was designated $1.6 million in tax incentives with a provision to stay for five years.
“This is only the second early exit that we've ever experienced,” says Storey County Manager Pat Whitten. “And when you get those, the provisions in the agreements that they sign with the state, with the county, you know, make sure that we are making whole, what we would have had.”
The Northern Nevada Development Authority says they are also disappointed to see Toys “R” Us leave the facility. "You go into it with the expectation that they're going to be here, long term,” says NNDA Deputy Director Maurice Washington. “But you never really know what the future is going to entail. And when it does happen, you try to make adjustments. And hopefully we'll get somebody in that building and move forward."
Whitten says Storey County has had a good working relationship with Toys “R” Us, and while getting the tax revenue is good, getting employees back to work is the most important.
Toys “R” Us said, “We are working diligently to place as many full- and part-time employees as possible from this distribution center at other company locations in the area.”
Whitten says Storey County is partnering with Toys “R” Us to relocate employees.