Toys R Us may liquidate its bankrupt U.S. operations, report says

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Toys R Us Store Closings_1520621683476

FILE – In this Sept. 19, 2017, file photo, shoppers walk into a Toys R Us store, in San Antonio. Toys R Us says it will be closing some U.S. stores and converting others to cobranded locations as it continues to deal with its financial restructuring following its bankruptcy filing. (AP Photo/Eric Gay, File)

WAYNE, NJ (WISH) — A report Thursday said Toys R Us is preparing for a liquidation of its bankrupt U.S. operations, which could mean an end to the once-mighty toy retailer.

Bloomberg News reports the company has failed to find a buyer or reach a debt restructuring deal with lenders, according to people familiar with the matter. However, the situation remains fluid, Bloomberg reported.

Toys R Us was hobbled by $5 billion in debt when it filed for bankruptcy protection in September. Officials had hoped the U.S. operations would emerge with a new business model and less debt. A representative for Wayne, New Jersey-based Toys R Us declined to comment for Bloomberg.

Chairman and CEO Dave Brandon said in a letter in January that some stores would begin closing in February and that tough decisions were ahead. 

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