Toys "R" Us to close all stores

  • Toys

Toys "R" Us to close all stores

Toys "R" Us went into bankruptcy in September, receiving a new $3.1billion loan as part of its effort to turn its prospects around, but a lackluster holiday season failed to inspire confidence in the toy company's viability.

What makes the woes of Toys "R" Us even more newsworthy is that, as CNN Money's the last megastore dedicated to toys.

While the plan is not final and Toys R Us is not commenting on the liquidation rumors, major toy vendors such as Hasbro and Mattel have seen a significant drop in stock prices.

Under bankruptcy protection, Toys R Us tried to find the financial flexibility to reduce that debt.

Toys "R" Us is still the place where up-and-coming playthings get discovered.

Toys R Us store closing down
CRAIG WALKER 'EVERYTHING MUST GO: All of Toys R Us's stores are having closing down sales

Parents may fantasize about floors free of children's toys-also known as landmines, some experts say-but that prospect may become a reality if Toys "R" Us liquidates its assets.

The decision to close all 800 USA stores is not final and could change if a turnaround plan is announced.

Hobbled by $5 billion in debt, the company that once dominated toy sales in the USA filed for bankruptcy protection in September. On Inc.'s site, in contrast, customers generally already know what they want and aren't likely to stumble upon something unexpected, he said. Toys R Us's United Kingdom unit put itself in the hands of a court administrator after discussions about selling the business fell apart. The company has about another 800 stores worldwide. The company announced in January that it would shutter about 180 underperforming locations around the country.

Facing broader concerns about the brick-and-mortar industry, the company was finally pushed to hire debt-restructuring advisers a year ago. Sales were on the rise in the 1990s, but in recent years, more consumers turned to online shopping which impacted sales.

All Kids R Us stores closed in 2003.