Toys 'R' Us may liquidate assets, close U.S. stores

Toys 'R' Us may liquidate assets, close U.S. stores

Toys R Us is considering liquidating all USA stores amid troubled bankruptcy restructuring, according to multiple media reports.

Media reports say that Toys R Us could close all 880 of its USA stores after failing to find a buyer or reach an agreement with its creditors.

The toy chain's United States division entered bankruptcy in September, planning to emerge with a leaner business model and more manageable debt. Around three dozen retailers sought bankruptcy protection past year due in large part to a radical shift in consumer behavior, both in where they shop, and what they buy.

But Toys "R" Us and its lenders have been on shaky ground since the holiday season, with the retailer at risk of not having enough cash to satisfy the terms of the loan. Under bankruptcy protection, Toys R Us tried to find the financial flexibility to reduce that debt.

Toys R Us could announce whether it will liquidate its stores as soon as Monday following a bankruptcy hearing, the Wall Street Journal reported.

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One company that could benefit from the model: Toys R Us.

Citing a source who asked not to be named, Bloomberg reported that the search for a buyer for the company had not been successful.

The falling fortunes of Toys "R" Us mirrors that of other major retail chains, most of which have fallen prey to online competition from Amazon and other outlets.

The locations set to close, which include Babies R Us, range from cities in NY and New Jersey to California. It was able to refinance for years, but it filed for bankruptcy in September. The company announced in January that it would close 180 of its more than 800 USA stores amid its restructuring efforts.

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