Published: Sat, March 10, 2018
Life&Culture | By Peggy Hughes

Toys R Us prepares to liquidate USA operations

Toys R Us prepares to liquidate USA operations

Toys R Us received a $3.1 billion loan to keep stores open after the bankruptcy. Things are also quickly deteriorating in many overseas divisions.

Toys "R" Us Inc. are reportedly planning to liquidate its USA operations.

The company's struggles aren't limited to its USA operations. Other Toys R Us locations in Alabama are in Dothan, Foley, Hoover, Huntsville, Mobile and Montgomery. It seems though that they haven't been able to find solutions to the $5 billion in debt it now holds, and things in the United Kingdom aren't looking any better at the moment, as that division just started the administration process. But the emergence of online competitors, like Amazon, weighed on results.

"Brick-and-mortar stores are just getting bludgeoned to death by e-commerce", Lopez-Castro said.

The company has not commented on the report.

A buyer has not stepped forward, and lenders have not agreed on any sort of debt restructuring. The toy chain accounts of 10 percent of sales for both toy companies. Bigger rivals like Walmart Inc. and Target Corp. would typically take a more cautious approach. In January, it announced 180 locations would be closed.

If you're planning on spending, then now is the best time as the retailer is slashing it's prices in a bid to get rid of stock as stores close down.

The news of Toys "R" Us closing is also bad news for the toy industry in general. The interest payments-$400 million a year-left the company weak and ripe for toppling. In February, the company, based in New Jersey, said it would likely be closing 200 more stores or close to half its total. Over the decades, it grew into the largest US toy chain.

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