Toys 'R' Us considers closing all of its U.S. stores

Adjust Comment Print

Toys R Us is preparing to liquidate its bankrupt USA operations, sources familiar with the matter told Bloomberg.

Fortune reports the shutdown of us operations is a "fluid" situation, but closing all the company's stores is becoming likely.

The chain filed for bankruptcy in September with hopes of rebounding during the holiday season, but the franchise announced in January that they would close about 180 struggling stores.

Toys "R" Us is close to closing all of its USA stores and liquidating all merchandise unless a last-minute rescue emerges, according to several reports.

LONDON, ENGLAND - FEBRUARY 19: Closing down signs sit on the window of Toys R Us in New Kent Road on February 19, 2018 in London, England.

Palestinian killed in West Bank clashes with Israeli forces
The Health Ministry in Gaza also reported three wounded in clashes by the border with Israel, one severely and two moderately. Demonstrators, for their part, hurled stones and empty bottles at troops and blocked roads with flaming auto tires.

According to CNN, the toy industry is faltering a bit recently because of the rise of video games and other high-tech toys that kids are increasingly demanding, instead of action figures, dolls and board games.

A new report says that Toys "R" Us, who filed for Chapter 11 protection in September of previous year, might conclude its reorganization efforts and instead liquidate all of its stores in the United States (via Wall Street Journal).

Bloomberg is reporting bad news for Toys "R" Us fans. Bigger competitors like Walmart and Target would typically take a more cautious approach.

As warehouses are emptied of stock, stores like the one in Proctor End South, Reading, will have an influx of goods for sale at a lower price. After filing for bankruptcy and taking on a $3.1 billion loan to keep stores open during corporate restructuring, anonymous insiders have told Fortune that the company's outlook has become grim in the past few days. Over the decades, it grew into the largest US toy chain.

Receiving debtor-in-possession financing and bankruptcy protection, Brandon said, would "ensure the iconic Toys R Us brand stays viable for years to come".

Comments