Toys R Us Inc., the U.S. toy retailer that filed for bankruptcy protection in September 2017, is now preparing to liquidate all its stores in the country as it has so far failed to find a buyer or strike a debt restructuring deal with lenders, "people familiar with the matter" told Bloomberg on March 8.
The company in October 2017 secured approval to access the remainder of its $3.1 billion bankruptcy loan to keep its U.S. stores running, but the sources said the retailer's disappointing holiday sales made the situation worse. A complete shutdown of its U.S. division has become "increasingly likely" in recent days, the sources told the newswire.
Toys R Us in January said it plans to shut down around 182 underperforming stores in the country. It was reported to be planning 200 more store closures the following month.
The company's situation overseas has also worsened, with its U.K. arm falling into administration recently after a potential buyer backed out. Toys R Us reportedly is also in talks to sell its Asia business to Hong Kong's Fung Group.
