Toys "R" Us may liquidate its bankrupt U.S. stores


The toy retailer is reportedly making plans to liquidate US operations, and shutter stores.

The company had previously announced plans to close 182 USA stores, including a Babies " R " Us in Jacksonville, after entering bankruptcy in September.

As early as next week, all Toys R Us stores could shut down, WGN-TV reports.

That quick descent meant the retailer entered bankruptcy without a plan for how to restructure its debt, which made finding a way to exit more hard.

Toys "R" Us announced plans in January to close 180 of its almost 800 stores.

Stores outside of the US are not affected. Currently, Toys "R" Us is responsible for around 10% of all sales for both companies.

Reuters reported that the retailer will liquidate its operations if its negotiations with creditors do not result in a deal that can help the company get out of bankruptcy.

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The company would only need a few weeks to heavily advertise the sales before kicking them off, she said.

But there are now no bidders for Toys R Us, which accounted for 15 to 20 percent of USA toy sales in 2017. Moreover, the retailer was willing to take chances on new products and small companies. In January, the company announced the closings of 180 Toys R Us locations across the country.

Mattel Inc., which makes toys including Barbie and Hot Wheels, saw its stock fall as much as 6.1 per cent.

Although most of Toys "R" Us' worldwide divisions were not included in the company's bankruptcy claim, some are now beginning to experience blowback.

After the company filed for Chapter 11 bankruptcy in September, it said 1,600 stores would remain open.

"Without a dedicated toy retailer - 365 days a year - you will see growth in the industry slow", Johnson said.

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