This Monday, Toys R Us is expected to appear at a bankruptcy hearing and shutting down all its stores and liquidating its entire USA operations is one of the options they are considering. After flagging sales, the U.S. branch of the company went into bankruptcy proceedings in September, hoping to restructure their debt. As a result, it is becoming increasingly likely that the US branch of the company will be liquidated, leading to the closure of all USA stores.
The U.S. and Canadian divisions of Toys R Us have been under court protection from creditors since September. Last month, Toys "R" Us began discounts sales of up to 30 percent at closing stores, including 11 in New Jersey.
The longer the stores stay open, the more rent Toys R Us will owe to its landlords.
Toys "R" Us was founded by Charles Lazarus in 1948.
The company was trying to re-negotiate its $5 billion debt load, which it has carried since 2005.
The company's massive interest payments also sucked up resources that could have gone toward technology and improving operations. The company has about another 800 stores worldwide. Reports indicate the chain is now preparing for liquidation after failing to find a buyer.
Toys R Us faced the same problems that have pushed other retail chains into bankruptcy.
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.
- Browns Acquire Jarvis Landry From Dolphins
- North Must Start Disarming Before Trump Will Meet Kim: White House
- Gabe Newell says Valve is going to start shipping games again
- Bag of 54 severed human hands found in Russian Federation
- OLD FIRM: Celtic boss Brendan Rodgers issues warning to Rangers
- Mario Tennis Aces arrives on June 22
- McLaren BP23 will have a higher top speed than the F1
- Samsung Galaxy Note9 reportedly not coming with in-display fingerprint scanner
- NY Assembly passes anti-gun violence legislation
- Celebrating International Women's Day 2018 around the world