Toys 'R' Us considering closing United States stores

Posted March 11, 2018

Bloomberg had earlier reported yesterday that Toys "R" Us was making preparations for a liquidation of its bankrupt United States operations.

Toys R Us is preparing to potentially close all of its U.S. stores as part of a liquidation, according to several reports.

The toy chain's USA division entered bankruptcy in September, planning to emerge with a leaner business model and more manageable debt.

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"No toy company will be spared entirely in the seemingly likely liquidation of Toys "R" Us", she said. But the toy chain has also been sacked by heavy debt, which precipitated its bankruptcy filing last fall.

Toys R Us filed for bankruptcy in September and recently started clearance sales at about 170 stores that it plans to permanently close in April.

Moorfields said at the time of the chain's collapse it is making "every effort" to secure a buyer for all or part of the business, but sources indicated this was unlikely.

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Its worsening situation, along with reports that it was considering bankruptcy, spooked vendors - with about 40 percent of them ceasing shipments and forcing the company to seek court protection. Moreover, the retailer was willing to take chances on new products and small companies.

One company that could benefit from the model: Toys R Us. Toys R Us, which was founded in 1985, has more than 100 stores nationwide and over 1,500 stores worldwide across 33 countries. The closings present a larger problem for the toy industry as a whole as word of an impending liquidation sent stocks tumbling.

Toys R Us has other locations in the Hudson Valley in Poughkeepsie, Middletown and the Woodbury Common Premium Outlets.

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Toys R Us collapsed into administration at the end of February. Mattel's shares fell 6% to $14.96, while Hasbro shares lowered around 3% to $90.75.