Walt Disney Co. (Burbank, Calif.) may close more of its retail stores or sell all or part of the underperforming chain, The Wall Street Journal reports, citing people familiar with the matter.
The report states that a decision has yet to be reached, and that changes could be weeks away. In the 1990s, Disney operated more than 520 retail stores in North America, but that number has since been reduced to 387. The company also operates about 160 stores overseas.
In its most recent quarterly financial statement, Disney indicated that its stores were acting as a drag on earnings and that the near-term operating conditions they face would continue to be tough.
The Journal also noted that Disney has been working in recent years to reduce debt by shedding non-core operations. In keeping with that strategy, the sale of the Anaheim Angels, the company's major league baseball team, is nearing completion, and its pro hockey franchise is also on the auction block.