Published: Wed, March 14, 2018
Business | By Tara Barton

Toys R Us is going out of business, closing all stores

Toys R Us is going out of business, closing all stores

Although Toys "R" Us first filed for bankruptcy back in September of previous year, it wasn't until after the holiday season that the company's true struggle became apparent. Some of the people said they can't get anyone to respond to questions at the retailer, which filed for bankruptcy in September and faces a $5 billion debt load. The company could close its stores as early as next week. In January, it was announced that 182 of its over 800 locations - almost 20 percent of its stores - would be closing come February, but before February was through, the news of a further 200 closures was announced.

And a couple of companies, like Kohl's and J.C. Penney, have reportedly been expanding their toy departments as more Toys R Us stores close.

Toys R Us has missed payments to some suppliers in recent days as its USA division heads toward a likely liquidation, according to people with knowledge of the situation.

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The retailer is expected to announce this week that it's liquidating its entire US operation, going out of business, and closing all of its 620 remaining stores. The chain has struggled to compete on price against giants like Amazon, Target and Walmart, which sell toys, but small Bay Area toy stores have also held their own by offering carefully curated selections and staff expertise. A representative for Wayne, New Jersey-based Toys R Us declined to comment.

"From product expertise to in-store events, independent retailers are connected to their customers and their community in ways unmatched by online or mass market", said Kimberly Mosley, President of the American Specialty Toy Retailing Association, in a news release about the survey.

The bleak situation lends evidence to the notion that Toys R Us is moving toward winding down its USA operations for good.

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