Denied
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TAW-93878G  /  Toys "R" Us - Delaware, Inc. (Annapolis, MD)

DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-93,878

TOYS "R" US - DELAWARE, INC.
A WHOLLY-OWNED SUBSIDIARY OF TOYS "R" US, INC.
SILVER SPRING, MARYLAND

TA-W-93,878A

TOYS "R" US - DELAWARE, INC.
A WHOLLY-OWNED SUBSIDIARY OF TOYS "R" US, INC.
WALDORF, MARYLAND

TA-W-93,878B

TOYS "R" US - DELAWARE, INC.
A WHOLLY-OWNED SUBSIDIARY OF TOYS "R" US, INC.
TOWNSON, MARYLAND

TA-W-93,878C

TOYS "R" US - DELAWARE, INC.
A WHOLLY-OWNED SUBSIDIARY OF TOYS "R" US, INC.
NATIONAL HARBOR, MARYLAND

TA-W-93,878D

TOYS "R" US - DELAWARE, INC.
A WHOLLY-OWNED SUBSIDIARY OF TOYS "R" US, INC.
CLARKSBURG, MARYLAND

TA-W-93,878E

TOYS "R" US - DELAWARE, INC.
A WHOLLY-OWNED SUBSIDIARY OF TOYS "R" US, INC.
GAITHERSBURG, MARYLAND

TA-W-93,878F

TOYS "R" US - DELAWARE, INC.
A WHOLLY-OWNED SUBSIDIARY OF TOYS "R" US, INC.
OWINGS MILLS, MARYLAND

TA-W-93,878G

TOYS "R" US - DELAWARE, INC.
A WHOLLY-OWNED SUBSIDIARY OF TOYS "R" US, INC.
ANNAPOLIS, MARYLAND

TA-W-93,878H

TOYS "R" US - DELAWARE, INC.
A WHOLLY-OWNED SUBSIDIARY OF TOYS "R" US, INC.
HAGERSTOWN, MARYLAND

TA-W-93,878I

TOYS "R" US - DELAWARE, INC.
A WHOLLY-OWNED SUBSIDIARY OF TOYS "R" US, INC.
BEL AIR, MARYLAND

TA-W-93,878J

TOYS "R" US - DELAWARE, INC.
A WHOLLY-OWNED SUBSIDIARY OF TOYS "R" US, INC.
GLEN BURNIE, MARYLAND

TA-W-93,878K

TOYS "R" US - DELAWARE, INC.
A WHOLLY-OWNED SUBSIDIARY OF TOYS "R" US, INC.
BALTIMORE, MARYLAND

TA-W-93,878L

TOYS "R" US - DELAWARE, INC.
A WHOLLY-OWNED SUBSIDIARY OF TOYS "R" US, INC.
FREDERICK, MARYLAND

TA-W-93,878M

TOYS "R" US - DELAWARE, INC.
A WHOLLY-OWNED SUBSIDIARY OF TOYS "R" US, INC.
COLUMBIA, MARYLAND

TA-W-93,878N

TOYS "R" US - DELAWARE, INC.
A WHOLLY-OWNED SUBSIDIARY OF TOYS "R" US, INC.
SALISBURY, MARYLAND

TA-W-93,878O

TOYS "R" US - DELAWARE, INC.
A WHOLLY-OWNED SUBSIDIARY OF TOYS "R" US, INC.
PASADENA, MARYLAND

TA-W-93,878P

BABIES "R" US
A SUBSIDIARY OF TOYS "R" US - DELAWARE, INC.
A WHOLLY-OWNED SUBSIDIARY OF TOYS "R" US, INC.
WALDORF, MARYLAND


Negative Determination Regarding Eligibility
To Apply for Worker Adjustment Assistance

In accordance with Section 223 of the Trade Act of 1974, as
amended ("Act"), 19 U.S.C. § 2273, the Department of Labor
herein presents the results of an investigation regarding
certification of eligibility to apply for worker adjustment
assistance.
Workers of a firm may be eligible for worker adjustment
assistance if they satisfy the criteria of subsection (a), (b)
or (e) of Section 222 of the Act, 19 U.S.C. § 2272(a), (b) and
(e). For the Department of Labor to issue a certification for
workers under Section 222(a) of the Act, 19 U.S.C. § 2272(a),
the following criteria must be met:
(1) The first criterion (set forth in Section 222(a)(1) of the
Act, 19 U.S.C. § 2272(a)(1)) requires that a significant
number or proportion of the workers in the workers' firm
must have become totally or partially separated or be
threatened with total or partial separation.

(2) The second criterion (set forth in Section 222(a)(2) of the
Act, 19 U.S.C. § 2272(a)(2)) may be satisfied in one of two
ways:


(A) Increased Imports Path:
(i) sales or production, or both, at the workers' firm
must have decreased absolutely; AND
(ii) (I) imports of articles or services like or directly
competitive with articles or services produced or
supplied by the workers' firm have increased, OR
(II)(aa) imports of articles like or directly
competitive with articles into which the
component part produced by the workers' firm was
directly incorporated have increased; OR
(II)(bb) imports of articles like or directly
competitive with articles which are produced
directly using the services supplied by the
workers' firm have increased; OR
(III) imports of articles directly incorporating
component parts not produced in the U.S. that are
like or directly competitive with the article
into which the component part produced by the
workers' firm was directly incorporated have
increased; AND
(iii) the increase in imports described in clause (ii)
contributed importantly to such workers' separation
or threat of separation and to the decline in the
sales or production of such firm.

(B) Shift in Production or Supply Path:
(i)(I) there has been a shift by the workers' firm to a
foreign country in the production of articles or
supply of services like or directly competitive with
those produced/supplied by the workers' firm; OR
(II) there has been an acquisition from a foreign
country by the workers' firm of articles/services that
are like or directly competitive with those
produced/supplied by the workers' firm; and
(ii) the shift described in clause (i)(I) or the
acquisition of articles or services described in
clause (i)(II) contributed importantly to such
workers' separation or threat of separation.

For the Department to issue a worker certification under
Section 222(b) of the Act, 19 U.S.C. § 2272(b), to workers of a
Supplier or a Downstream Producer, the following criteria must
be met:
(1) a significant number or proportion of the workers in
the workers' firm or an appropriate subdivision of the
firm have become totally or partially separated, or
are threatened to become totally or partially
separated;
(2) the workers' firm is a Supplier or Downstream Producer
to a firm that employed a group of workers who
received a certification of eligibility under Section
222(a) of the Act, 19 U.S.C. § 2272(a), and such
supply or production is related to the article or
service that was the basis for such certification; and
(3) either
(A) the workers' firm is a supplier and the component
parts it supplied to the firm described in paragraph
(2) accounted for at least 20 percent of the
production or sales of the workers' firm;
or
(B) a loss of business by the workers' firm with the
firm described in paragraph (2) contributed
importantly to the workers' separation or threat of
separation.

Section 222(c) of the Act, 19 U.S.C. § 2272(c), defines the
terms "Supplier" and "Downstream Producer."
Workers of a firm may also be considered eligible if they
are publicly identified by name by the International Trade
Commission as a member of a domestic industry in an
investigation resulting in a category of determination that is
listed in Section 222(e) of the Act, 19 U.S.C. § 2272(e).
The group eligibility requirements for workers of a firm
under Section 222(e) of the Act, 19 U.S.C. § 2272(e), can be
satisfied if the following criteria are met:
(1) the workers' firm is publicly identified by name by
the International Trade Commission as a member of a
domestic industry in an investigation resulting in--
(A) an affirmative determination of serious injury or
threat thereof under section 202(b)(1);
(B) an affirmative determination of market disruption
or threat thereof under section 421(b)(1); or
(C) an affirmative final determination of material
injury or threat thereof under section
705(b)(1)(A) or 735(b)(1)(A) of the Tariff Act of
1930 (19 U.S.C. 1671d(b)(1)(A) and
1673d(b)(1)(A));
(2) the petition is filed during the 1-year period
beginning on the date on which--
(A) a summary of the report submitted to the
President by the International Trade Commission
under section 202(f)(1) with respect to the
affirmative determination described in paragraph
(1)(A) is published in the Federal Register under
section 202(f)(3); or
(B) notice of an affirmative determination described
in subparagraph (1) is published in the Federal
Register; and
(3) the workers have become totally or partially
separated from the workers' firm within--
(A) the 1-year period described in paragraph (2); or
(B) notwithstanding section 223(b), the 1-year
period preceding the 1-year period described in
paragraph (2).

The investigation was initiated in response to a petition
filed on June 7, 2018, by the State of Maryland on behalf of
workers and former workers at Toys "R" Us - Delaware, Inc., a
wholly-owned subsidiary of Toys "R" Us, Inc., Silver Spring,
Maryland (TA-W-93,878), Waldorf, Maryland (TA-W-93,878A),
Townson, Maryland (TA-W-93,878B), National Harbor, Maryland
(TA-W-93,878C), Clarksburg, Maryland (TA-W-93,878D),
Gaithersburg, Maryland (TA-W-93,878E), Owings Mills, Maryland
(TA-W-93,878F), Annapolis, Maryland (TA-W-93,878G),
Hagerstown, Maryland (TA-W-93,878H), Bel Air, Maryland (TA-W-
93,878I), Glen Burnie, Maryland (TA-W-93,878J), Baltimore,
Maryland (TA-W-93,878K), Frederick, Maryland (TA-W-93,878L),
Columbia, Maryland (TA-W-93,878M), Salisbury, Maryland (TA-W-
93,878N), Pasadena, Maryland (TA-W-93,878O) and Babies "R" Us,
a subsidiary of Toys "R" Us - Delaware, Inc., a wholly-owned
subsidiary of Toys "R" Us, Inc., Waldorf, Maryland (TA-W-
93,878P)(hereafter referred to collectively as Toys "R" Us).
The petition asserts that worker separations are due to the
bankruptcy of Toys "R" Us and states that Toys "R" Us "services
are being moved to other stores outside US."
Toys "R" Us is engaged in activities related to the
retailing of children and baby products, toys, and games (retail
services and related support services). On September 18, 2017,
Toys "R" Us filed for bankruptcy. The Department has
determined that there is no successor-in-interest firm.
During the course of the investigation, information was
collected from the petition, the workers' firm, and public
sources. Because Toys "R" Us customers are individual members
of the public, the Department did not conduct a customer
survey of import activity but conducted an industry analysis,
which included current purchasing trends and the impact of
technology, and reviewed aggregate import data.
With respect to Section 222(a)(2)(A)(ii) of the Act, the
investigation revealed that Toys "R" Us did not import
services like or directly competitive with the retail services
and related retail support services supplied by the subject
workers.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that Toys "R" Us did not shift the supply
of retail services and related retail support services, or a
like or directly competitive service, to a foreign country or
acquire the supply such services from a foreign country.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that Toys "R" Us is not a Supplier or
Downstream Producer to a firm that employed a group of workers
who received a certification of eligibility under Section 222(a)
of the Act, 19 U.S.C. § 2272(a).
Finally, the group eligibility requirements under Section
222(e) of the Act, have not been satisfied because Criterion (1)
has not been met since Toys "R" Us has not been publicly
identified by name by the International Trade Commission as a
member of a domestic industry in an investigation resulting in
an affirmative finding of serious injury, market disruption, or
material injury, or threat thereof.
Conclusion
After careful review of the facts obtained in the
investigation, I determine that the requirements of Section 222
of the Act, 19 U.S.C. § 2272, have not been met and, therefore,
deny the petition for group eligibility of Toys "R" Us -
Delaware, Inc., a wholly-owned subsidiary of Toys "R" Us,
Inc., Silver Spring, Maryland (TA-W-93,878), Waldorf, Maryland
(TA-W-93,878A), Townson, Maryland (TA-W-93,878B), National
Harbor, Maryland (TA-W-93,878C), Clarksburg, Maryland (TA-W-
93,878D), Gaithersburg, Maryland (TA-W-93,878E), Owings Mills,
Maryland (TA-W-93,878F), Annapolis, Maryland (TA-W-93,878G),
Hagerstown, Maryland (TA-W-93,878H), Bel Air, Maryland (TA-W-
93,878I), Glen Burnie, Maryland (TA-W-93,878J), Baltimore,
Maryland (TA-W-93,878K), Frederick, Maryland (TA-W-93,878L),
Columbia, Maryland (TA-W-93,878M), Salisbury, Maryland (TA-W-
93,878N), Pasadena, Maryland (TA-W-93,878O) and Babies "R" Us,
a subsidiary of Toys "R" Us - Delaware, Inc., a wholly-owned
subsidiary of Toys "R" Us, Inc., Waldorf, Maryland (TA-W-
93,878P), to apply for adjustment assistance, in accordance with
Section 223 of the Act, 19 U.S.C. § 2273.
Signed in Washington, D.C. this 22nd day of February 2019.

/s/Del Min Amy Chen
______________________________
DEL MIN AMY CHEN
Certifying Officer, Office of
Trade Adjustment Assistance