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.