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Toys 'R' Us is liquidating business operations in US

Toys 'R' Us is liquidating business operations in US

Toys R Us is preparing to potentially close all of its U.S. stores after weak holiday sales thwarted its plans to restructure the business through bankruptcy proceedings, according to several media reports.

The toy chain entered bankruptcy in September 2017 with plans to close some stores and emerge with a new business model.

The liquidation would hurt more than just Toys "R" Us.

In January, bankrupt Toys R Us Inc. announced plans to close 180 of its 900 stores.

The liquidation will be a big blow for the toy industry, as the chain makes up about 15 percent of United States toy revenue.

Toys "R" Us has over 1,600 stores worldwide, which are also at risk.

The Associated Press reports toy-maker stocks fell Friday after Reuters reported that Toys "R" Us is getting ready to liquidate its USA operations. But, since news began breaking that the company could ultimately liquidate entirely, the retailer has been eerily quiet.

Shares of Toys R Us debtholders Hasbro and Mattel saw their stocks fall in after-hours trade Thursday.

Two Toys R Us stores in Alabama were originally set to close, which included the Summit location.

Shares of Mattel Inc. and Hasbro, the two largest USA toymakers and Spin Master, Canada's largest toy company, all fell on Friday as the industry speculated about whether or not a liquidation of Toys "R" Us in the USA would occur, a move that would put pressure on 2018 toy shipments for toymakers in markets around the world.

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

"It's like nostalgia. I mean, everybody's gone to Toys "R" Us since they were a kid", Kayla Pitzer said as she shopped with her son.

According to the Wall Street Journal, the company is abandoning efforts to restructure through the bankruptcy.

"Without a dedicated toy retailer - 365 days a year - you will see growth in the industry slow", Johnson said. "This could be a sign that the company is finding it hard to reach creditor consensus and might be unable to avoid liquidation".